Multiple Choice indicate the answer choice that best completes the statement or answers the questio I. our financial statements are usually prepared for a business. The statement of ca last. The retained earnings statement the balance sheet (B), the income certain order to obtain information needed for the next statement. In what order as prepared? a. I, RES, B lb. B, I, RES c. B. RES. d. RES, I, B. 2. Which of the following stock investments should be accounted for using the cost a. investments of less than 20% and investments between 20% and 50% b. investments between 20% and 50% c. all stock investments should be accounted for using the cost method d. investments of less than 20% 3. The assets and liabilities ofa company are $128,000 and s84,000, respectively. a. $44,000 b. $84,000 c. $212,000 d. $128,000 4. The percentage analysis of increases and decreases in individual items in co a. analysis b. profitability analysis c. solvency analysis d. horizontal analysis 5. Merchandise inventory at the end of the year was inadvertently overstated correctly states the effect of the error on net income, assets, and stockho a. net income is understated, assets are understated, and stockholders' ed b. net income is overstated, assets are overstated, and Stockholders equ c. net income is understated, assets are understated, and stockholders' e d. net income is overstated, assets are overstated, and stockholders eq 6. An investor purchased 500 shares ofcommon stock, $25 par, for S217 $49.50 per share. What is the amount of gain or loss on the sale