Section 1-MULTIPLE CHOICE (Circle the correct response) 129 marks-2marks.each 1. Investors buy shares in Orange Inc. for $500,000 $100,000 is spent on assets on Day One of the company's operations Al that point in time they A $400,000 8. $100,000 C. $500,000 0.5000,000 E none of the above 2. The statement that summarizes all revenues A. the income statement B the statement of retained eamings C. the cash flow statement D. the balance sheet E none of the above 3. The objectives of financial statements include A to measure the efficiency of the organization s to show operating profit is called B to demonstrate compliance with environmental protection laws C to assist investors and creditors in investing and Sending decisions D. to prevent managerial haud E none of the above 4. On April 1, 2007, Blackfy Lid took out an "employer's lability insurance policy for the first time, paying $1,000. The policy is an annual one, from April 1 to March 31 of the following year. The amount of insurance expense for the year to December 31, 2007 was A. $1,000 B.$750 C$ 500 D. $250 E none of the above 5. A long-term asset is one that A has been acquired for use by the business over an indefinite period 8. will last forever C is over three meters D. cannot be sold E none of the above