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"Education is the most powerful weapon which you can use to change the world”
– Nelson Mandela

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M8 QUIZ

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Q 1. A corporation generated assets by issuing equity securities and through profitable operations. Which effects likely occurred? 2. Which one of the following transactions always causes a decrease to retained earnings? 3. Cash dividends are paid based on the number of shares which are 4. Which one of the following serves to differentiate debt from equity? 5. Treasury stock is

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1. Common stock and retained earnings increased. 2. Declaring a stock dividend 3. outstanding. 4. Interest on debt is tax deductible while dividends to equity investors are not. 5.a decrease of shareholders' equity.