1) An investor who is looking at a company's financial statements cannot determine whether the:

A) company's earnings are rising or falling.

B) company pays a dividend.

C) company has positive cash flow.

D) company's owners are financially sound.

2) Amounts earned by selling goods or services to customers are called:

revenues.

expenses.

dividends.

common stocks.

3) A cost of doing business is referred to as a(n) ______ and is considered necessary to earn ______.

revenue; assets

expense; revenue

liability; expenses

dividend; revenue

4) The obligations and debts of a business are referred to as:

equities.

assets.

dividends.

liabilities.

5) The WC Company borrowed $26,500 from a bank during the year. This borrowing would be reported on the statement of cash flows as a(n):

investing activity in the amount of ($26,500).

financing activity in the amount of ($26,500).

investing activity in the amount of $26,500.

financing activity in the amount of $26,500.