Which of the following costs related to a company car would NOT be expensed? (A) The cost to install an engine with higher horsepower (B) The cost to change car's oil (C) The cost to replace a broken windshield (D) The cost of new tires (2 marks) 8. Daniel Construction Company paid S45,000 for equipment with a market value of $95,000. At which of the following amounts should the equipment be recorded? (A) $95,000 (B) $45,000 (C) $42,500 (D) $5,000 2 marks) 9.A company purchased a used machine for $80,000. The machine required installation costs of $8,000 and insurance while in transit of $500. At which of the following amounts would the equipment be recorded? (A) $80,500 (B) $88,500 (C) $88,000 (D) $80,000 (2 marks) 10. Which of the following depreciation methods allocates an equal amount of depreciation to each year? (A) Units-of-production (B) Straight-line (C) Declining-balance (D) Double-declining-balance (2 marks) SECTION A A statement of cash flows is generated to show: (A) The revenues the company has earned (B) The expenses the company incurred during the time period. (C) The inflow and outflow of cash during the time period. (D) How profits were generated (2 marks) 2.Which one of the follo wing is a principal function of the statement of cash flows? (A) To predict future net income (B) To evaluate management (C) To evaluate the company's earnings per share (D) To predict the growth of company assets ons (2 marks) 3.Which of the following sections from the statement of cash flows includes the issuance of stock and the payment of dividends? (A) The investing section (B) The financing section (C) The operating section (D) The noncash investing and financing section (2 marks) Baltimore Company uses the indirect method to prepare its statement of cash flows and provides following information about transactions for the year: Plant assets, net-beginning balance: $90,000 Equipment costing $52,000 was purchased for cash Depreciation expense of $12,000 was recorded during the year Plant assets, net ending balance: $120,000 Equipment with a net asset value of $10,000 was sold for $14,000 What was the net amount of Cash from investing activities? (A) $38,000 negative (B) $60,000 positive (C) $52,000 negative (D) $30,000 negative (2 marks) 5.The Sonesta Company uses the indirect method for the statement of cash flows. In 2013, they purchased equipment for $10,000 cash. Which of the following statements is TRUE? (A) $10,000 would be shown as a negative cash flow in the operating activities section. (B) $10,000 would be shown as a negative cash flow in the investing activities section. (C) $10,000 would be shown as a positive cash flow in the investing activities section. (D) $10,000 would be shown as a positive cash flow in the financing activities section. (2 marks) 6. Which of the following would be expensed, rather than capitalized? (A) Oil change and lubrication (B) Major engine overhaul (C) Modification for new use (D) Addition to storage capacity (2 marks)