QUESTION $1$

When Wal$-$Mart prepares its Statement of Cash Flows, cash received from selling a warehouse building should be classified as operating cash flow.

True

False

QUESTION $2$

A firm spent $$1,000$ to improve the engine of a machine, which extended the useful life of the machine by two years. The $$1,000$ spending should be

capitalized $($i$.$e$.,$ recognized as an asset on the balance sheet$).$

True

False

QUESTION $3$

When Apple spends money on advertisement, the value of the Apple brand increases and therefore Apple should capitalize the amount spent on advertisement

as an asset $($brand name$)$ on the balance sheet.

True

False