1. ABC Co.'s petty cash receipts indicate the following expenditures for the end of October:

Office supplies	$490
Miscellaneous selling expense	$300
Miscellaneous administrative expense	$120

What is the cumulative effect of these transactions on the statement of cash flows?

a.$490 increase in operating activities

b.$420 decrease in financing activities

c.$910 decrease in operating activities

d.No effect on the statement of cash flows.

2. XYZ Co.'s petty cash receipts indicate the following expenditures for the end of October:

Office supplies	$490
Miscellaneous selling expense	$300
Miscellaneous administrative expense	$120

These transactions would result in a:

a.$490 decrease in stockholders' equity.

b.$910 increase in stockholders' equity.

c.$910 increase in total assets.

d.$420 decrease in total assets.