1. Railroad Company's Chief Executive Officer (CEO) wants to know the amount of revenue earned during the most recent year. Which financial statement should the CEO review? a. Income statement b. Statement of stockholders' equity C. Balance sheet d. Statement of cash flows 2. Railroad Company's Chief Executive Officer (CEO) wants to know how much the company paid in dividends during the most recent year. Which financial statement should the CEO review? a. Income statement b. Statement of stockholders' equity C. Balance sheet d. Both a and care correct, as dividends appear on both the income statement and balance sheet. 3. Railroad Company received $2,000,000 for the issuance of common stock. How does this transaction impact Railroad Company's income statement? a. Net income increases. b. Net income decreases. C. This transaction does not affect the income statement. d. Retained earnings increases. 4. Railroad Company reported $150,000 of net income during 2020. How will this impact the December 31, 2020 balance sheet? a. Retained earnings will increase by $150,000. b. Retained earnings will decrease by $150,000. C. Total stockholders' equity will decrease by $150,000. d. Common stock will increase by $150,000. 5. In which situation will Anna's Catering recognize revenue in September? a. Anna's Catering agreed to cater an office lunch for All Business in October. b. Anna's Catering received a $450 deposit to cater a wedding reception next summer. C. Anna's Catering catered a dinner meeting for Arts and Such on September 4 and billed the customer $725. d. Anna's Catering collected $800 from Football Corporation for a meal that was catered in August. 6. Which transaction would be recorded as an expense for Anna's Catering? a. Anna's Catering paid a $1,000 dividend to Anna, the owner. b. Anna's Catering paid $1,200 for cleaning supplies. C. Anna's Catering borrowed $5,000 from a local bank. d. Anna's Catering's employees earned $500 and will be paid in two weeks