2. Which of the following statements is TRUE?

A. Dividends reduce net income.

B. Dividends are revenue of a business.

C. Dividends are expenses of a business.

D. Dividends reduce retained earnings.

Your answer (A, B, C, or D)

Explain the reason(s) for your choice in detail.

3. The accounting equation can be stated as:

A. Assets - Stockholders' Equity + Liabilities = Zero.

B. Assets = Liabilities - Stockholders' Equity.

C. Assets + Stockholders' Equity = Liabilities.

D. Assets - Liabilities = Stockholders' Equity.

Your answer (A, B, C, or D)

Explain the reason(s) for your choice in detail.

5. The CORRECT data flow from one financial statement to the next is:

A. statement of retained earnings, income statement, statement of cash flows, balance sheet.

B. statement of retained earnings, income statement, balance sheet, statement of cash flows.

C. balance sheet, statement of retained earnings, income statement, statement of cash flows.

D. None of the above

Your answer (A, B, C, or D)

Explain the reason(s) for your choice in detail.

6. Purchasing supplies on account will:

A. increase total assets and increase total liabilities.

B. increase total liabilities and increase stockholders' equity.

C. increase total assets and decrease total liabilities.

D. increase total liabilities and decrease total assets.

Your answer (A, B, C, or D)

Explain the reason(s) for your choice in detail.

7. Posting is:

A. copying the information from the journal to the ledger.

B. entering the data into the journal.

C. copying the information from the ledger to the financial statements.

D. copying the information from the journal to the trial balance.

Your answer (A, B, C, or D)

Explain the reason(s) for your choice in detail.

please explain why all the other answers are wrong*****