Reference no: EM132482351

Question 1: The Charleston Company pre-pays annual rent. If the adjusting entry to record the current period's prepaid rent expired is not recorded:

Select one:

a. Current assets will be understated

b. Net income will be overstated

c. Current liabilities will be overstated

d. Current liabilities will be understated

e. Gross Profit will be overstated

Question 2: Which is a typical result of a declaration of a cash dividend but not a declaration of a stock dividend?

Select one:

a. Retained Earnings decreases

b. Common Stock account increases

c. Net Income decreases

d. Liabilities increase