1. Common stock and additional-paid in capital represent the financing sources from shareholders. True False
2. Financial reporting focuses on reporting the impact of transactions on an entity's financial position. True False
3. Unearned revenue is reported on the balance sheet as a liability and represents amounts paid to an entity in exchange for future services and/or goods. True False
4. A transaction may be an exchange of assets or services by one business for assets, services, or promises to pay from a different business. True False