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1. Cash is considered a(an) _____.

  A. asset
  B. liability
  C. both of the above
  D. none of the above

2. Depreciation involves the recording of assets and how the cost is spread our over a number of years.


3. In a cookie baking company, sugar and flour are categorized as which of the following expenses?

  A. operating expenses
  B. fixed expenses
  C. cost of goods sold
  D. none of the above

4. Revenue and Expenses are found on which financial statement?

  A. Balance Sheet
  B. Statement of Owner's Equity
  C. Income Statement
  D. all of the above

5. Sales minus Cost of Goods Sold = ______

  A. Gross profit
  B. Net Profit
  C. Operating Profit
  D. After tax profit

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