1.What information flows from the Profit & Loss to the Statement of Cash Flows

a).Accounts Receivable

b).Total Expenses

c).Net Income

d.) Other Expenses

2. Arbitrary Inc has a fixed asset threshold of $2,500 per item. They purchase 5 computers for $10,000. How should that purchase be treated?

a). Add 5 computers to the fixed asset account for $2,000 each and depreciate over their life

b).Add 4 computers to the fixed asset account for $2,500 each and depreciate over the estimated life

c).Add 1 item to the fixed asset for $10,000 and depreciate over the estimated life

d).Fully expensed at the time of the purchase

3.This Company reports on an accrual basis of accounting. If a quarterly bill has not been received by the end of the month, what should you do?

a).Nothing, wait for the bill to come and record it when it does

b).Accrue the entire quarterly bill, and then move the future 2 months to prepaid

c).Accrue one month of the bill

d).Accrue the entire quarterly bill