53- At the end of an assets useful life:

1. The assets book value will equal its residual value.
2. The assets book value will be greater than its residual value.
3. The assets book value will be less than its residual value.
4. None of these answer choices are correct.

54- Cloudy Inc. failed to record depreciation expense in 2019. Which of the following is true?

1. Net Income in 2019 is understand.
2. Gross profit in 2019 is overstated.
3. Net income is 2019 is overstated.
4. Operating income in 2019 is understated.

20. Which of the following is subtracted from net income as an adjustment under the indirect method of preparing the statement of cash flows?

A) Salaries payable decrease.

B) Gain on the sale of land.

C) Loss on the sale of equipment.

D) Accounts receivable increase.