1. (TCO 1) Suppose your company paid $12,000 in cash for its rent. How does this transaction impact the accounting equation? 2. (TCO 2) Suppose your company sold $25,000 in merchandise to a customer for credit. How does this transaction impact the accounting equation? 3. (TCO 3) Opportunity is one of the components of the fraud triangle. How can a company reduce opportunity as a fraud risk? Give an example of how someone could use opportunity to commit fraud and how the company could reduce this risk. 4. (TCO 4) What is horizontal analysis of financial statements? How does horizontal analysis differ from vertical analysis? 1. (TCO 3) Prenumbered documents are a key feature in an internal control system. Why are prenumbered documents such an important internal control? Give an example of prenumbered documents as an internal control. 2. (TCO 1) Describe the balance sheet. Why is this statement important to the company, creditors, and investors? 3. (TCO 4) Name and describe one profitability ratio. What does this ratio measure? What is the formula for this ratio?