136. An Operating Lease will have how many of these expenses

1. Depreciation Expense
2. Rental Expense
3. Interest Expense
   1. One B) Three C) None D) Two

137. Assuming a current ratio of 1.0 and an acid-test ratio of 0.80, how will the borrowing of cash by issuing a six-month note payable affect each ratio?
     1. Decrease the current ratio and increase the acid-test ratio.
     2. Decrease the current ratio and decrease the acid-test ratio.
     3. Increase the current ratio and increase the acid-test ratio.
     4. No change to the current ratio and increase the acid-test ratio.
138. For a journal entry with only two lines, the following entry is valid: Increase in Revenue, Decrease in Expense.
     1. False B) True

139. Using the Trueblood Criterion what is the ultimate goal of accounting?
     1. Predict future cash flows to the firm
     2. Predict income to the investor or creditor
     3. Predict future cash flows to the investor or creditor
     4. Predict income to the firm

140. For which step in the Operating cycle is there a difference between manufacturers and retailers?
     1. Fourth B) Third C) Second D) First