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Problem 1: If a company borrows 1,000 in long-term debt (liabilities), which of the following must be true?
Group of answer choices
Option 1: Long-term liabilities increased by 1,000.
Option 2: Current assets decreased by 1,000.
Option 3: Current liabilities increased by 1,000.
Option 4: Long-term liabilities decreased by 1,000.
Problem 2: Which method of accounting requires that a company record financial transactions (sales, expenses) when they are incurred, regardless of when cash changes hands?
Option 1: Accrual Method
Option 2: FIFO Method
Option 3: Cash Method
Option 4: Deferral Method
Financial Statement Analysis and Preparation
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Computation of Free Cash Flow
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