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9) Know the difference between the following types of transactions and be able to put specific transactions into one of the categories: a) Asset Source __asset side increases and claims side increases b) Asset Exchange one asset increases and another asset decreases c) Asset Use asset side decreases and claims side decreases 10) Balance Sheet - a) Know the sections of the balance sheet and the main accounts that are presented in each section. Assets - Cash, Accounts Receivable, Inventory, Equipment, Land, Buildings, etc. Liabilities - Accounts payable, Notes payable, Accrued liabilities, Long-term debt, etc. Stockholders' Equity-Common stock, Retained Earnings b) How is the balance sheet different from the other financial statements? It measures the financial position of the company at a specific point in time. 11) Statement of Cash Flows a) What does the cash flow statement show? The change in cash in the company over time. b) What are the 3 main parts of the Cash Flow statement? i) ii) iii) c) Classify each of the following cash transaction into one of the 3 sections of the Cash Flow statement: i) Cash inflow from selling equipment ii) Obtaining cash from selling common stock to investors iii) Cash used to pay expenses of the company iv) Receiving cash from sale of services v) Paying dividends to owners of the company vi) Cash to purchase manufacturing equipment vii) Cash outflow from paying a loan. 12) Retained Earnings - Know the Retained Earnings Formula: Beginning Retained Earnings + Net Income -Dividends = Ending Retained Earnings