1. Retained earnings are part of the stockholders.
2. If a firm sells inventory at cost for cash, its total assets rise.
3. Additional paid-in capital is a current asset.
4. If a firm has retained earnings, it has an equal amount of cash.
5. The sum of a firm's liabilities and equity equals the sum of its assets.
6. Retained earnings represents the earnings accumulated by the firm over its life.
7. Accounts receivalbe are adjusted for doubtful accounts (i.e. accounts that may not be paid).
8. Accounts suggest that assets should always be valued at their market value.
9. Issuing new stock or borrowing from a bank is a cash flow.
10. An increase in accounts payable is a cash outflow.