6. a. We Make Stuff Company borrowed $725 cash from Citizens Bank. As a result of this transaction, We Make Stuff's liabilities would increase by $725. b. assets would decrease by $725. expenses would increase by $725 d. equity would increase by $725. c. 7 b. c. d. Which of the following statements is true? Revenue represents a decrease in assets resulting from operating activities. Dividends are decreases in assets incurred for the purpose of producing revenue. A company incurs expenses at the moment that it borrows money Net income results in an increase in stockholders' equity arising from revenues in excess of expenses. 8 a Assume that a company reports retained earnings of $4,500 on its December 31, 2019 balance sheet and then reports a net loss of S1,600 in its income statement for the year ending December 31, 2020. If cumulative earnings through December 31, 2020 are $8,200, then total cumulative dividend distributions must be $2,100 b. $3,700 $5,300 d. S6,100 o. a c. The following information pertains to the next two questions. Company A paid $200,000 cash to buy land from Company B. 9. Select the statement that is true. Total liabilities of Company B would increase b. Company A's equity would decrease. Total assets of Company A would be unaffected. d All of the above are true. Select the statement that is true, Company A would have an asset exchange, including a cash outflow from investing activities. b. Company B would have an asset exchange, including a cash inflow from investing activities. The balance in the cash account on Company A's books would decrease, while the balance in the cash account on Company B's books would increase d All of the above statements are true. 10. 2 c