credit Common Stock S1,000 E) Debit Common Stock $6,000, debit $7,000. 1 1) The appropriate section in the statement o assets such as equipment is: A) Financing activities. in the staternent of cash nows for reporting the cash purch or moncas investing or financing activiy C) Investing activities. D) Operating activities E) This is not reported on the statement of cash flows ons with its creditors to borrow money and or to repay the principal a cash flows from: 12) A company's transactions with its creditors of both short- and long-term debt are reported as A) Financing activities. B) Indirect activities C) Investing activities D) Operating activities. E) Direct activities. 13) On July 1, a company paid the $2,400 premium on a one-year insurance policy with benefits beginning on that date. What wil be the insurance expense on the annual income statement for the current year ended December 31? A) $2.400. B) S1,200. C) $1,000. D) S400. E) $1,400. 14) A company's sales in Year I were $410,000 and in Year 2 were $447,500. Using Year 1 as the base year, the percent change for Year 2 compared to the base year is: A) 100%. C) 10%. D)8%. E) 92%. 15) The accounting principle that requires revenue to be recorded when earned is the: A) Going-concern assumption. B) Revenue recognition principle. C) Matching principle. D) Time period assumption. E) Accrual reporting principle