Part 2: Each question worth 6 points.

(1) List and describe the steps in the control of purchases and payments

(2) What is free cash flow? What is the difference between a positive and negative

free cash flow?

(3) What are additions, betterments and extraordinary repairs for long-term assets?

Are they revenue or capital expenditures?

(4) Describe three methods of depreciation applied for long-term assets in the

notes.

(5) What are the tools to measure accounts payable? How may they be calculated?

What do they indicate and how can you judge if the results are good or bad?