13.

If an owner wanted to know how money flowed into and out of the company, which financial statement would the owner use?

a. statement of cash flows

b. income statement

c. statement of retained earnings

d. balance sheet

14.

Michael Anderson is starting a computer programming business and has deposited an initial investment of $15,000 into the business cash account. Identify how the accounting equation will be affected.

a. increase in assets (Cash) and increase in assets (Accounts Receivable)

b. increase in assets (Cash) and increase in liabilities (Accounts Payable)

c. increase in assets (Cash) and increase in owner's equity (Michael Anderson, Capital)

d. increase in assets (Accounts Receivable) and decrease in liabilities (Accounts Payable)