6. If common stock was issued to acquire an $8,000 machine, how would the transaction appear on the statement of cash flows? A) It would depend on whether you are using the direct or the indirect method. B) It would be a positive $8,000 in the financing section and a negative $8,000 in the investing section. It would be a negative $8,000 in the financing section and a positive $8,000 in the investing section. It would not appear on the statement of cash flows but rather on a schedule of noncash investing and financing activities. C) D) 7. An adjusted trial balance A) proves the equality of the debit balances and credit balances of ledger accounts after all adjustments have been made. B) is a required financial statement under generally accepted accounting principles. C) is prepared after the financial statements are completed D) cannot be used to prepare financial statements. 8. During the lifetime of an entity accountants produce financial statements at artificial points in time in accordance with the concept of Relevance A) B) C) D) No Yes Yes 0 es es No 9. Financial accounting standard-setting in the United States A) can be described as a social process which reflects political actions of various interested user groups as well as a product of research and logic. B) is based solely on research and empirical findings. C) is a legalistic process based on rules promulgated by governmental agencies. D) is democratic in the sense that a majority of accountants must agree with a standard before it becomes enforceable. A)) Provide information that is useful to management in making decisions. B) Provide information that excludes claims to the resources. C) Provide information that clearly portrays nonfinancial transactions. D) Provide information about the reporting entity that is useful to present and poten 10. What is the objective of financial reporting? equity investors, lenders, and other creditors