1. In accounting, depreciation refers to? (NOT ANS. D)

   1. deterioration of a fixed asset

   2. systematic and rational expensing of fixed asset cost

   3. the obsolescence of a fixed asset

   4. the decline in value of a fixed asset

2. In which section of the statement of cash flows would the effect of an impairment write-down be reported? (NOT ANS. D)

   1. Operating

   2. Investing

   3. Financing

   4. None of the above since no cash has been spent