1. The accounting equation can be expressed as (Points : 1) Owners Equity = Assets + Liabilities. Assets = Liabilities + Owners Equity Assets = Liabilities - Owners Equity. Liabilities = Assets + Owners Equity. 2. Liabilities are defined as (Points : 1) Owners claims on assets. Outsiders claims on assets Increases in cash. Future economic benefits. 3. Assets are reported on the (Points : 1) Consolidated Income Sheet. Statement of Cash Flows and Other Economic Benefits. Balance Sheet Income Statement of Continuing Operations 4. When determining whether to record an asset as a fixed asset, what two criteria must be met? (Points : 1) Must be an investment and must be long-lived. Must be long-lived and must use the asset in a productive manner Must be long-lived and must be a tangible asset. Must be a tangible asset and must be an investment. 5. Depreciation is (Points : 1) The loss in market value of an asset. The allocation of a long-term assets cost to an expense account over the assets life An increase in an assets value over time. Writing the asset up or down to market value. 6. Current liabilities are liabilities that (Points : 1) Must be paid in the current operating cycle Must be paid from revenues. Must be of a definite amount. Are due when the company can pay. 7. Net accounts receivable are (Points : 1) Accounts receivable plus the allowance for doubtful accounts. Accounts receivable less the allowance for doubtful accounts. Accounts receivable less bad debt expense. Sales collections for the period. 8. When a bond sells at a discount, the stated rate of interest is (Points : 1) Equal to the market rate of interest. Unimportant to the purchaser. Less than the market rate of interest. Determined by the government. 9. Stock that has been sold and then repurchased by the issuing corporation is called (Points : 1) Authorized. Issued. Outstanding. Treasury stock. 10. The statement of cash flows reports cash flows for (Points : 1) Investing activities. Operating activities. Financing activities. All of the above. 11. Which of the following costs do NOT change with the level of business activity? (Points : 1) Total fixed costs. Total variable costs. Total direct materials costs. Fixed costs per unit. 12. Opportunity costs are (Points : 1) Considered to be fixed in the short term. Equivalent to sunk costs. Able to be controlled by most effective managers. The value of benefits foregone when one decision is selected over another. 13. Manufacturing overhead costs include (Points : 1) Opportunity costs. Direct materials and direct labor. Indirect materials and direct materials. Indirect labor and indirect materials. 14. A job-order costing system is likely to be used by a(n) (Points : 1) Oil refinery. Breakfast cereal manufacturer. Paint manufacturer. Ship builder. 15. Assuming all other factors are held constant, the break-even point will be decreased by (Points : 1) Increasing the fixed costs. Decreasing the contribution margin. Increasing the selling price. Increasing the variable cost per unit