So I am having some issues understanding concepts. I have questions with correct answers posted, if you could help explain why on any of them, it would be greatly appreciated. Thank you in advance for helping me understand any of them!

1. Owners equity increases each period by the amount of the corporation's positive net cash flow.

False

2. If a company's cash balance increases during the year, and the company also reports positive net income, then the company's retained earnings balance must increase.

False

3. All of the following would result in an increase in stockholders equity EXCEPT

A. the company purchased treasury stock.

B. the company sold common stock at par value.

C. the company sold common stock above par value.

D. the company had positive net income greater than dividends paid.

4. When a company sells a piece of equipment or land, any gain (sales price less the book value of the asset or residual value) is thought to be a capital gain.

False

5. A company with negative net income will also have negative operating cash flow.

False