True or False - Clearly label your response on your answer document. 1. Depreciation expense is a measure of an asset's increase in value due to wear and tear A) B) True False 2. The cash inflows generated from a long-term asset will be received over several future periods. A) B) True False 3. Assets are listed in the order of their liquidity on the classified Statement of Income A) B) True False 4. The primary purpose of financial accounting information is to aid users in their economic decision-making relative to the organization. A) B) True False 5. Dividends are an expense of doing business. A) B) True False 6. Prepaid expenses, inventory and accounts payable are examples of temporary accounts A) ) B) True False 7. COGS is equal to the inventory purchased for a given time period. A) B) True False 8. The choice of presenting expenses based on their nature or function rests with management A) A B) B True False 9. FOB shipping means the seller owns the inventory until it reaches the buyers premises. A) A B) B) True False 10. The gross amount of accounts receivable should be reflected on the statement of financial position: this is what the company expects to collect in cash.. A) B) True False