1. Which purchase wouldn't be considered a capital type expenditure? (It's NOT ANS. D)

   1. plant equipment

   2. routine repairs and maintenance

   3. purchase inventory

   4. prepaid insurance

2. Salvage value is explicitly reported on which financial statement? (ITS NOT ANS. A)

   1. balance sheet

   2. income statement

   3. statement of retained earnings

   4. no financial statement

3. What is the current approach to moving Goodwill from the Balance Sheet to the Income Statement? (its not ANS. C)

   1. Impairment

   2. Depreciation

   3. Amortization

   4. Revenue decline assessment

4. Which accounting assumption is consistent with the use of depreciation for purposes of expense recognition? (ITS NOT ANS. A)

   1. Matching

   2. Going concern

   3. Predictive value

   4. Materiality