MWEWET Wie 1) Financial accounting serves which primary functions (1 A) Measures business activity B) Communicates business activities to interested parties. C) Makes business decisions on behalf of interested parties, D) Both a, and b. 2) Resources of a company are referred to as: A) Liabilities B) Stockholders Equity C) Dividends D) Assets 3) Sales of products or services are referred to as: A) Assets B) Revenues C) Liabilities D) Expenses 4) Amounts owed by the company are referred to as: A) Expenses B) Dividends C) Liabilities D) Assets 5) 5) Which financial statement conveys a company's ability to generate profits in the current period? A) Income Statement B) Statement of cash flows C) Balance Sheet D) Statement of stockholders' equity 6) Which of the following transactions causes an increase in total assets? A) Pay employee salaries for the current month. B) Pay dividends to stockholders. C) Issue common stock in exchange for cash. D) Purchase office equipment for cash. 7) 7) Which of the following transactions causes an increase in stockholders' equity? A) Pay dividends to stockholders. B) Obtain cash by borrowing from a local bank. C) Provide services to customers on account. D) Purchasing advertising on a local radio station