10. Indicate the effect of the following transaction on the debt-to-equity financial ratio: Sale of merchandise in cash with profit.

1. Decreases
2. Increases
3. It remains the same.

11. 11.If the external auditor who examined the financial statements of ABC Companies issues an opinion in which he expresses that the statements are prepared in all material respects in accordance with Generally Accepted Accounting Principles (GAAP), the opinion is classified as:

1. Adverse
2. Clean (Unqualified or unmodified)
3. Denied (Disclaimer)
4. Conditioned (Qualified)

12. Cash flows from operating activities $ 60,000

Cash flows from investing activities 10,000

Cash flows from financing activities (30,000)

Cash at beginning of period 30,000

The ending cash account balance for the current year is:

1. $ 70,000
2. $ 100,000
3. $ 40,000
4. $ 30,000