For each answer for each question (A, B, C and D) give details why the answer is not correct or wrong.

6. An advantage of a classified balance sheet is that it is casicr to detcrmine: A. If the company is likely to be solvent over the long term. B. If dividends have been paid to stockholders. C.If long-term assets are large enough to pay current liabilities. D. The operating activities of the company 7. A company would always report net income when: A. Assets increased during an accounting period. B. Revenues are recorded according to the revenue recognition principal. C. The ending retained earnings is greater than the beginning retained earnings. D. Its liabilities decreased during an accounting period. 8. In what onder would the items on the balance sheet appear? A. Asscts, retained B. Assets, liabilities, stock, retained earnings C. Assets, stock, liabilities, retained earnings. D. Stock, retained canings, liabilities, assets. carnings, liabilitics, stock Deleted5 9. If a company has total stockbolders' equity of $60,000 at the end of the year, which of the following statements must be true? A. Net income for the ycar cquals $60,000. B. The company has issued S60,000 of common stock. C. The company's assets exceed liabilities by $60,000. D. Total revenues during the year equal S60,000. Deleted: 5503000+598,000+103000-14800-21000 0. What is the primary purpose of financial accounting? A. Determine the amount of tax liability owed to the government. B. Communicate business transactions to internal management. C. Measure the protitability of the company in order to assist employees with making decisions. D. Is to measure business transactions and communicate to external parties' information that is needed for sound cconomic decision making. 11. Which of the following is the correct order for preparing the financial statements? A. Income statement, retained earnings statement, cash flow statement, balance sheet. B. Balance sheet, income statement, retained earnings statement, cash flow statement C. Retained earnings statement, income statement, balance sheet, cash flow statement D. None of the above lists the correct order 12. A debit would make which of the following accounts decrease? A. Accounts Receivable. B. Common Stock D. Pre paid expenses