167. What would be the impact on the accounting equation when a company acquires treasury stock?
     1. Decrease assets and decrease stockholders' equity.
     2. Decrease assets and increase stockholders' equity.
     3. No effect on the accounting equation.
     4. Increase assets and increase stockholders' equity.

168. How many of the following transactions would affect operating cash flows reported in the statement of cash flows (all transaction involve cash)?

Borrowed $50,000 from the bank Purchased $12,000 in supplies

Provide services to customers for $27,000 Paid the utility bill of $750

Purchased a delivery truck for $12,000 Received $25,000 from issuing common stock

1. Four. B) Two. C) One. D) Three.

169. It is easier for a company to cheat on its taxes
     1. same for periodic inventory accounting and perpetual inventory accounting
     2. under periodic inventory accounting than under perpetual inventory accounting
     3. under perpetual inventory accounting than under periodic inventory accounting

170. When a firm takes a big bath
     1. it increases cash flows B) it increases revenues

C) it decreases cash flows D) it increases expenses

171. When a company with a current ratio of 1.2 pays a current liability:
     1. Its current ratio remains unchanged. B) Its current ratio increases.

C) Its debt to equity ratio increases. D) Its current ratio decreases.