1) Vertical analysis is a method that reduces all number on the statement of financial position to a percentage of total assets or equity and total liabilities.

a) true

b) false

2)The only financial statement that is required to do the statement of cash flows is the statement of financial position.

a)true

b)false

3)Which of the following is shown as an operating activity in the statement of cash flows?

a)long-term borrowings

b)share capital

c)patents

d) depreciation

4)Which of the following scenarios represents a cash outflow?

a)The bank loan account increases by $10,000

b)The mortgage payable account decreases by $30,000

c) The house account decreases by $15,000

d)The furniture account decreases by $4000