Please give the answer and explanation to each question. Thanks a lot!

1. Which of the following best describes depreciation?

   1. Shows the increase in value of a physical asset over the assets useful life

   2. shows the drop in value of an asset when the asset is first used by an entity

   3. Part of the cost of a physical asset allocated as an expense to each time period in which the asset is used

   4. Accounts for the market value of a physical asset

2. Which of the following is not an external user of financial information?

   1. Supplies of goods and services

   2. Shareholders

   3. Management

   4. Government

3. Which of the following would not be reflected in the statement of cash flows?

   1. Purchase of another business with cash

   2. Cash sales for a retail business

   3. Purchase of equipment with cash

   4. Declaration of a proposed dividend

4. Which of the following reflects the sustainability element of the triple bottom line?

   1. Decrease cost, increase value, improve cash collection

   2. Reduce inventory, reduce employees, reduce overheads

   3. Profitability, social accountability, environmental sensitivity

   4. Revenue, gross profit, net profit

5. Which of the following ratios would not be considered to be a measure of a business economic performance?

   1. Return on equity

   2. Return on assets

   3. Sales growth

   4. Inventory days