Question 1: True or false. 1. The asset impairment loss is equal to the excess of net book value of an asset over its expected future cash flows. 2. Tangible long-lived productive assets difler from intangible long-lived productive assets in that tangible assets have physical substance whereas intangible assets have no physical substance. 3. The equipment cost initially reported on the balance sheet includes related installation costs. 4. Ordinary repairs and maintenance costs are incurred to maintain a long-lived asset and should be capitalized. 5. The net book value of a depreciable asset equals its acquisition cost minus the depreciation expense for the current ycar 6. Return on equity (ROE) is a function of three ratios: net profit margin, return on assets. and financial leverage. 7. Return on assets (ROA) should be always smaller than return on equity (ROE) 8. The inventory turnover ratio is significantly affected by the choice of inventory 9. The fixed asset turnover ratio increases when net income increases 10. Current ratio is used to measure the ability of a company to pay off its long-term debt