Automatic Corporation applied for a bank loan, and the bank required, as part of the loan application, a set of audited financial statements from the corporation. What is an audit and why would the bank require this procedure? Select one: a. It is an unnecessary procedure that the bank requires in order to make work for its accounting department b. It is an independent opinion as to the fairness of the company's financial statement so that the bank can determine whether they are reliable. C. It is a credit check on the corporation's credit history, to tell the bank if the corporation is a serious credit risk. d. It is a thorough recalculation of the corporation's retained earnings account by another accountant to see to it that the corporation has earned enough income to be able to pay back the loan. Whippet Corporation recently paid cash to acquire a building for use in its operations. Whippet's total assets, based on this transaction, have Select one: a. not enough information to tell. b. increased c. decreased d. Stayed the same Which of the following accounts is categorized as an asset? Select one: a. Retained Earnings b. Common Stock C. Prepaid Rent d. Dividends