Question 1 (1 point) The income statement will show a net loss, instead of a net income, when the company has less cash at the end of the year than at the beginning of the year the company has total liabilities that are greater than the total assets total expenses are more than total revenues the gross margin percentage is less than 40% cash that came in during the year was less than the cash that was paid out Question 2 (1 point) The ability of a company to have enough short-term cash flows to pay obligation as then come due is called what? solvency O net income cash minus current liabilties liquidity Question 3 (1 point) On December 31, Year 1, our company is being sued by another company. We would record a liability on our December 31 balance sheet if the outcome of the law suit is reasonably possible, and the amount can be reasonably estimated the outcome of the law suit is probable, but the amount is not reasonably estimable the outcome of the law suit is probable and the amount can be reasonably estimated the outcome of the law suit is reasonably possible, but the amount is not reasonably estimable Question 4 (1 point) On which financial statement do we find the account Inventory O income statement statement of changes in stockholders' equity balance sheet SEC form 10-K