1.Which of the following increases cash?

A)Issuance of long term debt B) Acquisition of property plant and equipment C) Payment of dividends D) Decrease in short term debt E) None

2.Which of the following are added to net income to determine cash flow from operating activities?

Depreciation B) Amortization C) Both A and B D)Gain on asset sale

13.If a company pays out more than the income tax incurred as shown in the income tax liability decrease, the effect on cash is a A) Decrease B)Increase C) No effect D) None of the above

4.Formis Inc estimates the useful life of each asset purchased and depreciates the asset over the useful life. This GAAP is known as

Monetary concept B) Economic Entity C) Going concern D) Matching E)None of the above