1. Which one of the following is true? a. Intangible assets are current assets that do not have physical substance b. Obligations expected to be paid after one year are classified as expenses C. Current assets are assets that a company expects to convert to cash or use up within one year or its operating cycle, whichever is longer d. Property, plant, and equipment are assets with relatively long useful lives that are held for resale. 2. Which of the following is false? a. Intangible assets are noncurrent assets that do not have physical substance b. Obligations expected to be paid after one year are classified as long-term liabilities. c. Current assets are listed in the order of magnitude (size) d. Property, plant, and equipment are assets with long useful lives that are used in operating the business. The Accounting Equation 3. If total liabilities decreased by $30,000 during a period of time and stockholders' equity increased by $35.000 during the same period, the amount and direction (increase or decrease) of the period's change in total assets is a: a $65,000 increase. b. $5,000 increase c. $5,000 decrease. d. $65.000 decrease 4. A corporation with total stockholders' equity of $75,000 paid a $12,000 business debt. As a result of this transaction total stockholders' equity a. did not change b. increased by $12,000. C. decreased by $12,000. d. increased to $75,000 5. Tatum Enterprises' total assets decreased by $11,000 during the year its common stock increased by $12.000 during the same period. Net Income totaled $8,000 during the year. What occurred to the company's total liabilities during the year? a. $23,000 decrease b. $1,000 increase c. $15,000 decrease d. $31.000 decrease 2