A transaction that is likely to cause an increase in a current liability is: Select one:

a. payment of accrued wages.

b. accrual of interest expense.

c. depreciation of equipment.

The payment of a current liability will Select one:

a. not affect working capital.

b. increase working capital.

c. decrease working capital.

When a firm purchases its own shares for the treasury: Select one:

a. it now has an obligation to pay dividends to itself

b. Total owners' equity is decreased

c. total owners' equity is increased.

Which of the following does NOT appear in the owners' equity section of a balance sheet? Select one:

a. Bonds payable

b. Treasury stock

c. Additional paid in capital

d. Preferred stock

If a firm sells treasury stock for more than its cost Select one:

a. total owner's equity does not change

b. additional paid in capital is increased

c. a gain is recognized in the income statement