Question 1 of 10 1.5 Points Two companies have identical assets and operating activities. Which of the following statements is true? O A. Both companies have the same net income. O B. The company with more debt will have lower operating income due to interest expense. O C. The company with more debt will have higher operating income due to leverage. D. The company with more debt will have lower net income due to interest expense. Reset Selection Question 2 of 10 1.5 Points A firm's financing costs include O A depreciation expense. B. costs of goods sold. OC. selling, general, and administrative (SGA) expenses, D. interest expense Reset Selection Question 3 of 10 1.5 Points Which of the following is true about the statement of cash flows? O A. It represents the basic accounting equation for a particular business B. It is also known as the statement of operations C. It represents the financial position of a business at a particular point of time O D. It reports revenues, expenses and liabilities O E. It includes only those revenues for which cash was received during the period Reset Selection Question 4 of 10 1.5 Points The two principal sources of financing for corporations are A. debt and equity. O B. common equity and preferred equity. O C. assets and liabilities O D. debt and accounts payable. O E. cash and common equity. Reset Selection Question 5 of 10 1.5 Points A margin is a measure of profit relative to O A. sales O B. assets O C. equity D. total assets O E. cash Reset Selection