11 1. Financing activities of a companay include which of the following? ( E a. Selling products or services to customers ) b. Using cash to purchase long-term assets such as E machinery. c. Borrowing money from the bank. d. paying salaries to employees. 2.Which financial statement shows that a company's resources equal claims to those resources( a. Income statement b. Statement of cash flows c. Balance sheet d. Statement of owner's equity 3.A debit is used to increase which of the following accounts?( ) d. Common stock ) a. Utilities expense b. Accounts payable c. Service revenue 4. A trial balance can best be explained as a list of ( E a. The income statement accounts used to calculate net income. b. Revenue, expense, and dividend accounts used to show the balances of the components of retained E earnings. c. The balance sheet accounts used to show the equality of the accounting equation. d. All accounts and their balances at a particular date. 5. Which of the following accounts is not listed in a post-closing trial balance?( a. prepaid rent b. account payable c. salaries expense d. retained earnings 6. Which of the following is not a characteristic of adjusting entries? ( ) ) a. Reduce the balance of revenue, expense, and dividend account to zero. b.Allow for proper application of the revenue recognition principle(revenue) or the matching principle(expense). c. Are part of accrual-basis accounting. d. Are recorded at the end of the accounting period. 1