MULTIPLE CHOICE Instructions Select the most suitable answer for each Which of the of business activity Operations (5) Financial Investing d Delivering 4In the first month of operations, the total of the debit entries to the Cash account amounted to $10,000 and the total of the credit entries to the Cash account amounted to $7,000. The Cash account has a a $1.200 credit balance b. $1,400 debit balance. $2,200 debit balance. $1,600 credit balance. 3. Resources owed by a business are referred to as a stockholders' equity. (b) liabilities. c.assets. d. revenues. 4. When revenues exceeds expenses, which of the following is true? a net loss results b. a net income results assets equal liabilities d assets are increased 5. A current liability is a. the last asset purchased by a business. (b) expected to be paid off within 12 months. C usually found as a separate classification in the income statement. d. expected to be converted to cash or used in the business within a relatively short period of time. 6. Which of the following groups is not among the external users for whom financial statements are prepared? a. Creditors. b. Regulators. c. Investors. d Managers