1. Cash inflows and outflows associated with changes in non-current liabilities and equity, not arising from profit, are included in which section of the statement of cash flows?

A.		Non-current.
B.		Operating.
C.		Financing.
D.		Investing.

2. What is the effect on the balance sheet when the business buys a car for $25,000, paying a deposit of $5,000 and promising to pay the balance within 60 days?

A.		Increase asset vehicle by $5,000; decrease asset bank by $5,000.
B.		Increase asset vehicle by $20,000; increase liability accounts payable by $20,000.
C.		Increase asset vehicle by $25,000; decrease asset bank by $5,000; increase liability accounts payable by $20,000.
D.		None of the above.