1. Which of the following statements is correct? A. The loss incurred related to the sale of a fixed asset is not reflected in net income. B. Cash received from issuing common stock to stockholders is reported as a financing activity cash flow within the statement of cash flows. C. Providing services to a customer on account does not impact net income. D. The purchase of manufacturing equipment is reported within the statement of cash flows as a financing activity. 2. What best describes a company in a Mature Stage of the Company Life Cycle: A. Financing cash flow exceeds both Operating and Investing cash flows B. Operating cash flows begin to accelerate as profit margins increase C. Operating cash flows exceed both Financing and Investing cash flows D. Declining sales and earnings results in deteriorating Operating and Investing cash flows 3. Which of the following transactions will decrease both the return on assets ratio and the total asset turnover ratio? A. Purchasing land by signing a note payable B. Accruing interest expense at year-end C. Accruing interest revenue at year-end D. Collecting cash from an account receivable 4. Which of the following statements is correct? A. Income from operations increases when common stock is sold for more than par value B. The accrual of research and development costs does not affect the net profit margin ratio C. The payment of an accrued liability decreases total asset turnover D. The declaration and payment of a cash dividend increases the return on assets ratio