Reference no: EM132933284

Problem 1: If revenues are greater than expenses, the income summary account will be closed by:

Select one:

a. Debiting income summary and crediting retained earnings

b. Debiting income summary and crediting cash

c. Debiting cash and crediting income summary

d. Crediting income summary and debiting retained earnings

Problem 2: Which of the following is a basic foundation of the stock market?

Select one:

a. Fair and public access to all company-related information

b. The need to maintain the integrity of information released to the public depends on the industry

c. The only way to make money in the stock market is to use information before anyone else learns it

d. Every organization involved is motivated for profit at all costs

Problem 3: How would retained earnings be affected by the declaration of cash dividends - common and stock dividends?

Select one:

a. No effect and Decrease

b. Decrease and Decrease

c. No effect and No effect

d. Decrease and No effect