104. Indicate whether each of the following statements about liabilities is true or false. _______ a) A net loss on the income statement decreases liabilities._______ b) The acquisition of a bank loan...

104. Indicate whether each of the following statements about liabilities is true or false.

_______ a) A net loss on the income statement decreases liabilities.
_______ b) The acquisition of a bank loan increases both assets and liabilities.
_______ c) The accounting equation requires that liabilities be equal to equity.
_______ d) The amount of a company's liabilities is equal to (assets - equity).
_______ e) Liabilities are reported on the statement of cash flows of a business.

105. Indicate whether each of the following statements about retained earnings is true or false.

_______ a) A dividend paid to stockholders decreases retained earnings.
_______ b) An issuance of common stock for cash increases retained earnings.
_______ c) The amount of net income for a period must equal retained earnings.
_______ d) The purchase of a truck decreases retained earnings.
_______ e) The amount of net income for a period increases retained earnings.