If an interest rate used for a NPV analysis of a capital investment project decreased, but all the other factors stayed the same, its NPV would

a) decrease

b) increase

c) might change but more data would be needed to determine how

Adjustments such as accruals and deferrals

a) help ensure that cash is correctly stated.

b) are necessary under the cash basis of accounting.

c) are needed to make sure net income is correctly stated.

d) are focused on ensuring that liabilities are correctly stated.

Current liabilities would include how many of the following?

• Unearned revenue
• Inventory
• Notes payable
• Prepaid expenses
• Accounts payable

a) 4

b) 3

c) 5

d) 2

e) 1