1.

Early in a period in which sales were increasing at a modest rate and plan expansion and start-up costs were occurring at a rapid rate, a successful business would likely experience:

		increased profits and no change in financing requirements.
		decreased profits and increased financing requirements because of an increasing cash shortage.
		decreased profits and decreased financing requirements because of an increasing cash surplus.
		increased profits and increased financing requirements because of an increasing cash shortage

2.

Clean surplus accounting for most common stock transactions holds for shares accounted for at market value. An exception to this is:

		issuance of common equity shares for employee stock options exercises.
		repurchase of common shares.
		issuance of common shares to new shareholders in public exchanges.
		None of these.