Multiple Choice 1. Net income is the difference between A. assets and liabilities B. revenues and expenses C. capital stock and retained earnings D. assets and owners' equity A business paid $9,000 to a creditor in payment for an amount owed. This transaction will 2. A. increase one asset and decrease another asset B. increase an asset and decrease a liability C. decrease an asset and decrease a liability D. decrease an asset and decrease owners' equity 3. If total assets are $47 during the period and owners' equity is $24, what are liabilities for this period? A.$23 B. $47 C. $71 D. Cannot be determined 4. Dividends A. are considered expenses of the company B. increase Retained Earnings C. are shown as liabilities on the balance sheet D. are closed at the end of the accounting period 5. Land originally purchased for $4,000 is sold for $10,000. This transaction will A. increase assets by $10,000 B. increase retained earnings by $4,000 C. increase assets by $6,000 D. decrease liabilities by $4,000 6. The asset debited by a business when it earns a fee on account is A. cash B. accounts receivable C. revenue D. accounts payable