Net income appears on which of the following financial statements? A) Balance sheet and income statement B) Balance sheet and statement of cash flows C) Income statement and statement of retained earnings D) Balance sheet and statement of retained carnings 8) Internal users of financial data include: A) Investors B) Management C) Regulatory authorities. am 1) T1 D) Creditors. 2) Sue Shells, Inc. issues $400,000 in new stock. It later uses the cash received to purchase land. What accounts are affected by these two transactions? A) Common Stock Cash, and Land. B) Cash, Common Stock, and Investments, and Land, C) Common Stock. Cash, and Investments D) Common Stock, and Land, 10) In addition to requiring that the accounting equation remain in balance, the double-entry system also requires that: A) The total dollar amount of debits must equal the total dollar amount of credits B) For any transaction, only two accounts are affected. The number of asset accounts must equal the number of liability and stockholder's equity accounts D) for any transaction, both sides of the accounting equation are affected. 11) Which one of the following is not a current asset? A) Supplies B) Prepaid Insurance C) Equipment D) Cash 12) How will a company's current ratio be affected by the purchase of equipment for cash A) The current ratio will decrease because current assets decrease. B) The current ratio will increase because current assets increase. C) The current ratio will decrease because current liabilities increase. D) The current ratio will remain unchanged. 13) Which of the following is an asset? A) Common Stock B) Retained Earnings C) Notes Payable D) Notes Receivable 3