6.Which of the following statements regarding the activities of Forman Corp. is true? a. Revenues decrease Forman's stockholders' equity. b. None of these choices are correct. c. Expenses increase Forman's stockholders' equity. d. Expenses decrease Forman's stockholders' equity.

7.Given a current ratio of 5 to 3, what is the effect of paying a supplier within 30 days of the purchase?

a. Unable to determine.

b. The current ratio would decrease.

c. The current ratio would remain the same.

d. The current ratio would increase.

9. Which of the following entries causes a decrease in assets and in net income?

a. The entry to record accrued wages payable.

b. The entry to record the payment of rent for three months in advance.

c. The entry to record the payment of utilities with cash.

d. The entry to record revenue earned but not yet received.

10. The following transactions occurred during March, the first month of operations for Canyon Products, Inc.

Issued 50,000 shares of capital stock in exchange for $600,000 cash.

Purchased land for $400,000, using a $150,000 cash down payment and signing a note payable for the balance.

Made a $60,000 cash payment on the note payable from the purchase of land.

Purchased equipment on credit from Burton, Inc. for $63,000.

What is the balance in the Cash account at the end of March?

a. $810,000

b. $600,000

c. $210,000

d. $390,000