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Exercise 1 1. The Trading and Profit and Loss account is also called (A) Balance Sheet (B) Cash Flow Statement (C) Income Statement (D) Trial Balance 2. The elements of the accounting equation are : I. Assets II. Liabilities III. Trial Balance IV. Capital (A) I, II and III (B)I, II and IV (C) I, III and IV (DII, III and IV 3. Which of the following are assets? 1. Cash and cash at bank II. Land and fixtures II. Loans and creditors 4- Retained earnings will change over time because of several factors. Which of the following factors would explain an increase in retained earnings? A-net loss B-Net income C-Dividends D-Investments By stockholders