6. If total liabilities decreased by $10,000 and shareholders' equity increased by $16,000 during a period of time, then total assets must change by what amount and direction (increase or decrease) during that same period? (a) $6,000 increase (b) $16,000 increase (:3) $6,000 decrease (d) $16,000 decrease (e) $l0,000 decrease 7. Long-term investments are (a) investments in debt securities and equity securities of other companies with the intention of reselling them in the short-tenn to earn income from uctuations in their price. (b) property, plant and equipment used to operate the company. (6) investments without physical substance. (d) multi-year investments in debt securities and equity securities held for many years to earn interest revenue and investment revenue or for strategic reason. (e) none of the above 8. Price-earnings ratio is calculated by dividing (a) net income (prot) by the weighted average shareholders' equity. (b) market price of debt securities by basic earnings per share. (c) income available to common shareholders by the weighted average shareholders' equity. (d) market price per share by the weighted average number of common shares. (e) market price per share by basic earnings per share