Question 5: Which of the following is correct? (1 Point) The statement of financial position shows the changes in the historical assets and liabilities of a firm O Net working capital is negative when current liabilities exceed current assets. Accounts payable is an example of a long term liability O Current assets convert to cash within two years. Owners' Equity is the sum of the assets and liabilities of a firm. Question 6: (1 Point) Which of the following is (are) correct? L. The half year rule permits firms to calculate CCA on only half of the asset's installed cost in the first year. II. As a firm deducts capital cost allowance, the market value of its assets decreases. III. Capital cost allowance does not affect the net income of the firm. O I only Ollcnly Oill only O and Ill only Oil and Ill only Question 7: (1 Point) Which of the following would result in a higher return on equity, all else the same? L. A decrease in interest expense. II. A higher corporate tax rate. III. A decrease in cost of goods sold. I and Ill only. I and Il only lll only I only I only