Which of the following is NOT true? O Accrual accounting requires expenses to be recorded when they are incurred, whether or not they have been paid. O Unearned revenue is a liability before it is earned. O Interest paid is a financing cash outflow on the statement of cash flows. O The gain on the sale of land is determined by subtracting the original cost of the land from the cash received on the sale. O Depreciation expense is never a cash outflow.

In a cash flow statement which one of the following would appear as an inflow of cash? O The profit on sale of a fixed asset. A repayment of debenture loans. An issue of shares at a premium, An increase in stock during the year.

In which ways is the balance sheet impacted when by creating and depreciating assets? A) Assets decrease as the cash balance decreases when cash is spent on Capex B) Assets increase when capex is added to the fixed asset balance C) Equity decreases through retained earnings balance as depreciation is expensed in the P&L D) Assets decrease when the fixed asset balance as depreciation reduces the balance O A only O B only O Conly OD only O A, B, and D only OB and D only O All of the above

Which of the following are not “non-cash” expenses? a) Depreciation expense b) Prepaid expense c) Depletion expense d) Amortization expense