quiz 2 - Quiz 2 Fall 08 Student: _ 1. The financial...

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Student: ___________________________________________________________________________ 1. The financial statement showing a firm's accounting value on a particular date is the: A.income statement. B.balance sheet. C.statement of cash flows. D.tax reconciliation statement. E.shareholders' equity sheet. 2. When making financial decisions related to assets, you should: A. always consider market values. B. place more emphasis on book values than on market values. C. only consider market values if they are less than book values. D. rely primarily on the value of assets as shown on the balance sheet. E. place primary emphasis on historical costs. 3. Depreciation: A.is a noncash expense that is recorded on the income statement. B.increases the net fixed assets as shown on the balance sheet. C.reduces both the net fixed assets and the costs of a firm. D.is a non-cash expense which increases the net operating income. E.decreases net fixed assets, net income, and operating cash flows. 4. Art's Boutique has sales of $640,000 and costs of $480,000. Interest expense is $40,000 and depreciation is $60,000. The tax rate is 34%. What is the net income? A.$20,400
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quiz 2 - Quiz 2 Fall 08 Student: _ 1. The financial...

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