Exercise 8 Fill in the blanks: 1. Cost of Goods Beginning Inventory + Purchases - 2.Income - Expenses = 3. are assets which are purchased for permanent use in the business 4. Opening W.I.P + Factory cost - Closing W.I.P = 5. Accumulated Depreciation is considered as Asset in nature Exercise 9 Choose from the following statement which are True & which Are False 1. _Liquidity refers to the ability of an enterprise to pay its debts as they mature. 2. _The balance sheet omits many items that are of financial value to the business but cannot be recorded objectively. 3. Financial flexibility measures the ability of an enterprise to take effective actions to alter the amounts and timing of cash flows. Companies frequently describe the terms of all long-term liability agreements in notes to the financial statements. 5. An asset which is expected to be converted into cash, sold, or consumed within one year of the balance sheet date is always reported as a current asset