Students will examine the interrelationships among and the difference in the basic financial statements When dealing with the elements of the financial statements, it is important to consider that: the current portion of long-term debt is the amount due within the next year and must be disclosed separately. fixed assets are short-term assets the company plans on selling in the near future. cost of goods sold is a component of paid-in capital. O retained earnings is a long-term liability account. Question 2 (1 point) Students will produce computations for depreciation. Which of the following are true? If using the double-declining balance method the total amount of depreciation expense during the life of the asset will be the highest. If using the units-of-production method, it is possible to depreciate more than the depreciable cost. If using the straight-line method, the amount of depreciation expense during the first year is higher than that of the double-declining method. Regardless of the depreciation method, the amount of total depreciation expense during the life of the asset will be the same. Question 3 (1 point) Students will relate inventory costing methods to basic financial statement results. During a period of consistently rising prices, the method of inventory that will result in reporting the greatest cost of merchandise sold is: OLIFO FIFO average cost weighted average Question 4 (1 point) Students will demonstrate understanding of Statement of Cash Flows preparation, as they properly classify business transactions. Which of the following would be reported on a statement of cash flows as an investing activity? Depreciation expense Purchase of treasury stock Sale of equipment for cash Paying cash dividends Question 5 (1 point) Students will demonstrate an understanding of the purpose and preparation of a bank reconciliation, and related journal entries to cash. A bank statement included a NSF check from customer Kim Fields for $2,100. The journal entry to record this reconciling item should: debit NSF and credit Cash for $2,100. debit Cash and credit Accounts Receivable for $2,100. debit Accounts Receivable and credit Cash for $2,100. debit Cash and credit NSF for $2,100