Answer the following based on the following link https://s21.q4cdn.com/399680738/files/doc_financials/annual_reports/FB_AR_2016_FINAL.pdf

1. Which of the company's following accounts was increased when the company originally issued its capital stock for cash?

	a.	Common stock.
	b.	Revenues.
	c.	Retained earnings.
	d.	Accounts payable.

2. Based on the company's current ratio (current assets / current liabilities), the company's ___________ has __________ over the last two balance sheets dates. (Round to the nearest whole number, for example, 3.049134 = 3).

a.

profitability, increased

b.

solvency, increased

c.

liquidity, decreased

d. liquidity, increased

3.Which of the company's current assets is the least liquid?

a.

Cash.

b.

Property and equipment.

c.

Prepaid expenses.

d. Accounts receivable.

4. Which of the company's accounts is a current liability?

a.

Accounts receivable.

b.

Retained earnings.

c.

Revenues.

d. Accounts payable.

5. What does income from operations represent on Facebook's income statement?

a.

Total revenue earned.

b.

Inflows of resources from the company's primary business activity.

c.

Income generated from the company's primary business activity.

d. Total revenues less total expenses

6. According to ________________________ the company's financial statements present fairly in all material respects financial position, results of operations, and cash flows in accordance with U.S. GAAP.

	a.	KPMG
	b.	Price Waterhouse Coopers
	c.	Ernst and Young
	d.	Deloitte and Touche