1. When assessing the value of a business, ________ is MOST important. capital assets cash flow profit

2. On an income statement, depreciation is considered to be an operating expense that is part of a firm's ________. bottom line retained earnings overhead cash flow

3. Depreciation affects all of the following EXCEPT ________.net profit operating income or earnings before interest and taxes cash flow liquidity

4. A depreciable asset that is sold will likely NOT recoup its ________. initial book value market value markup losses

5. Which of the following is NOT an example of accrual basis accounting? cash and credit sales are reported at the time of the transaction rather than at the time the money from the credit sales were actually received actual sales reported when cash is received a purchase financed through credit is an expense that does not affect current cash flow the purchase of a piece of equipment designed to last longer than one year is listed as a depreciating asset

6. Free cash flow is the available cash after ________ have been paid. shareholders, creditors, and taxes operating expenses, creditors, and taxes creditors and shareholders operating expenses, taxes, and shareholders

7. The difference between the historic price a firm paid and its going price among current buyers and sellers is the difference between its ________. book value and depreciation market value and depreciation market value and intrinsic value book value and market value

8. Measuring ________ involves analyzing the income statement and balance sheet. profit financing operating expenses cash flow

9. ________ is a noncash expense representing the cost of assets as they lose value over time. Negative interest Amortization Depreciation Liability

10. Which of the following assets is LEAST likely to depreciate over time? machinery vehicles computers land