6 Which of the following is true of unearned revenue? a Revenue is increased when it is received. b Liabilities are decreased when it is received. C Assets are decreased when it is received. d Assets are increased when it is earned. e Liabilities are increased when it is received. 7 Which of the following is true of the statement of cash flows? a Collecting an accounts receivable is a financing cash inflow. b Depreciation paid is an investing cash outflow. Purchasing inventory on account is an investing cash outflow. d Interest paid is an operating cash outflow. e Receiving cash when common stock is issued is an investing cash inflow. 8 Maple Company started in 2011 when it issued common stock for $20,000. No more stock has been issued since that time. At the end of 2018, Maple had $86,000 in total assets and $14,000 in total liabilities. During 2019, Maple earned $110,000 in net income and paid $42,000 in dividends. How much did Maple have in total assets at December 31, 2019, if the company had $19,000 in total liabilities at that time? a $159,000 b $139,000 c $87,000 d $140,000 e None of the Use the following information to answer questions 9 and 10: Cypress Corporation borrowed $20,000 on October 1, 2018 and will have to repay $23,000 on October 1, 2021. 9 Which of the following correctly states interest payable at December 31, 2019? a $1,000 b $1,250 C $3,000 d $1,750 e None of the 10 Which of the following correctly states interest expense incurred during the year 2019? a $1,000 b $750 C$1,750 d $1,250 e None of the 11 Which of the following lists includes only items listed on the income statement? a Gross profit, loss on land sale, accumulated depreciation, net loss b Net income from operations, notes payable, fee income, insurance expense c Depreciation expense, salaries expense, inventory, accounts receivable d Cost of goods sold, sales, gain on land sale, gross profit e Fee income, interest expense, inventory, net income