Clarion Company provides a one-year warranty on all merchandise it sells. In Year 1, the company recorded sales of $500,000. It estimated that the warranty costs on these sales would amount to $2,000. In July of Year 2, Clarion paid $250 to satisfy a warranty claim. Indicate whether each of the following statements is true or false. a) Clarion's adjustment to record the warranty at the end of Year 1 decreased total assets and total stockholders' equity b) Clarion's adjustment to record the warranties at the end of Year 1 increased Clarion's total liabilities. c) The transaction dated in July of Year 2, decreased total assets and net income for Year 2. d) The $250 payment to satisfy a warranty claim in July of Year 2 decreased Clarion's total liabilities e) The adjustment to recordthe warranty at the end of Year 1 did not affect Clarion's revenue for the year. What factor distinguishes an employee from an independent contractor? Multiple Choice The amount of the pay Whether the individual chooses to be treated as an independent contractor Whether or not the company supervises and controls the work Whether or not the work is performed on company property Which of the following terms describes the ability to generate short-term cash flows? Multiple Choice Profitability Stockholder's Equity Solvency O Liquidity