Question 16 Answer saved Marked out of 1.

00

The Retained Earnings statement is based upon which of the following relationships?

Select one:

a. Retained Earnings – Net Income – Dividends

b. Retained Earnings – Net Income + Dividends

c. Retained Earnings + Net Income + Dividends

d. Retained Earnings + Net Income – Dividends

Clear my choice

Question 17 Answer saved Marked out of 1.00

The historical cost principle is used to:

Select one:

a. Aid management in controlling costs.

b. Record transactions and events at fair market value.

c. Record transactions and events at their original cost.

d. Calculate cost of goods sold.

Clear my choice

Question 18 Answer saved Marked out of 1.00

Ben Dryden, president of Jet Glass, Inc, noticed a $8,000 debit to Accounts Payable in
the company's general ledger. This debit could correspond to:

Select one:

a. A $8,000 sale to a customer.

b. A purchase of equipment costing $8,000 on credit.

c. A payment of $8,000 to a supplier to settle a balance due.

d. The failure to pay this month's $8,000 utility bill on time.

Clear my choice