7.	Resources owned by a business are referred to as
	A)	stockholders' equity.
	B)	liabilities.
	C)	assets.
	D)	revenues.

8.	Which of the following financial statements is concerned with the company at a point in time?
	A)	Statement of cash flows.
	B)	Income statement.
	C)	Retained earnings statement.
	D)	Balance sheet.

9.	If the retained earnings account decreases from the beginning of the year to the end of the year, then
	A)	net income is less than dividends.
	B)	there was a net income and no dividends.
	C)	additional investments are less than net losses.
	D)	net income is greater than dividends.

10.	Dividends are reported on the
	A)	income statement.
	B)	balance sheet
	C)	retained earnings statement.
	D)	income statement and balance sheet.

11.	Two of the major characteristics that make accounting information useful are
	A)	Relevance and reliability.
	B)	Verifiability and timeliness.
	C)	Comparability and flexibility.
	D)	Understandability and consistency.

12.	Which of the following groups uses accounting information to determine whether the company can pay its obligations?
	A)	Investors in common stock
	B)	Marketing managers
	C)	Chief Financial Officer
	D)	Creditors