QUESTION 11 When expenses are recognized in a corporate setting a. Net income increases b Stockholders' equity decreases C. There is no effect on net income. d Stockholders' equity increases QUESTION 12 XYZ Co.'s external auditor rendered an opinion on the financial statements which stated that in the opinion of the auditor, the financial statements and related disclosures fairly present financial information in all material respects in terms of U.S. GAAP. This is an example of a (an) Adverse opinion b. Disclaimer of opinion. Unqualified (unmodified) opinion d Qualified opinion