Question 32 Not yet answered Marked out of 1.

00

The relationship between the income statement and the balance sheet may be
described as follows:

Select one:

a. The income statement explains part of the change in owner’s equity between two
balance sheet dates

b. The balance sheet summarizes the change in net income occurring between
successive income statements.

c. The income statement summarizes the changes in cash occurring between two
balance sheet dates.

d. The assets shown in a balance sheet include all the revenue shown in the income
statement.

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Question 33 Not yet answered Marked out of 1.00

Before any month-end adjustments are made, the net income of Russell Company is
$66,000. However, the following adjustments are necessary: o ce supplies used,
$2,160; services performed for clients but not yet recorded or collected, $2,640;
interest accrued on note payable to bank, $2,040. After adjusting entries are made
for the items listed above, Russell Company's net income would be:

Select one:

a. $72,840.

b. $67,560.

c. $64,440.

d. Some other amount.

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