106. Indicate whether each of the following statements about the types of transactions is true or false. _______ a) An asset source transaction increases total assets and decreases claims to...

106. Indicate whether each of the following statements about the types of transactions is true or false.

_______ a) An asset source transaction increases total assets and decreases claims to assets.
_______ b) The issuance of stock to owners for cash would be an example of an asset use transaction.
_______ c) Purchasing equipment for cash is an example of an asset exchange transaction.
_______ d) Paying a dividend to stockholders is an example of an asset use transaction.
_______ e) Making a payment on a bank loan is an example of an asset exchange transaction.

107. Indicate whether each of the following statements about financial statements is true or false.

_______ a) A cash dividend paid to stockholders is shown on the statement of cash flows.
_______ b) A cash dividend paid to stockholders is shown on the statement of changes in stockholders' equity.
_______ c) A cash dividend paid to stockholders is shown on the income statement.
_______ d) Among other things, the balance sheet shows how a company got its cash.
_______ e) Changes in retained earnings for the accounting period are shown on the income statement.

108. Indicate whether each of the following statements about equity is true or false.

_______ a) Operating expenses reported on the income statement increase retained earnings.
_______ b) Common Stock is a part of contributed or paid-in capital for a corporation.
_______ c) Retained earnings is increased by loans received from a bank.
_______ d) Dividends paid to stockholders decrease retained earnings.
_______ e) Owners' equity is the residual interest in the company resulting from the difference between assets and liabilities.