90. Wilgus Company paid $57,000 in January 2012 for salaries that had been earned by employees in December 2011. Indicate whether each of the following statements about financial statement effects of the January 2012 event is true or false.
_____ a) The income statement for 2012 is not affected because the salaries expense had been recognized at the end of December.
_____ b) On the 2012 statement of cash flows, cash flows from operating activities decreased.
_____ c) Payment of the salaries in 2012 decreased a liability.
_____ d) The statement of changes in stockholders' equity would not be affected because the salaries expense had been recognized at the end of December.
_____ e) Both assets and equity decreased as a result of this transaction.
91. Indicate whether each of the following statements about the closing process and the accounting cycle is true or false.
_____ a) The closing process transfers certain account balances to retained earnings at the end of the accounting cycle.
_____ b) Only accounts that appear on the income statement are closed at the end of each accounting cycle.
_____ c) Another name for permanent accounts is "nominal accounts."
_____ d) The permanent accounts contain information that is cumulative in nature.
_____ e) The retained earnings balance at the end of any given year is equal to that year's net income.