When expenses exceed revenues, a company’s retained earnings balance will decrease. True False
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When expenses exceed revenues, a company’s
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- For each of the following items, indicate whether a debit or a credit applies. A. increase in retained earnings B. decrease in prepaid rent C. increase in dividends D. decrease in salaries payable E. increase in accounts receivable F. decrease in common stock G. decrease in prepaid insurance H. decrease in advertising expense I. decrease in unearned service fees J. increase in office equipmentrevenues ew less than expenses, what results on the income statement? What impact does an increase in revenue have on net income? What impact does an increase in revenue in expense have on income? What impact does an increase in revenue have on retainded earnings? what impact does an increase in expense have on retained earnings?The income statement records all the revenues and expenses for a given period and shows whether the firm is making a profit or is experiencing a loss. True False
- The effects of paying salaries for the current period are to:a. increase assets and increase stock- holders' equity.b. increase assets and increase liabilities.c. decrease assets and decrease liabilities.d. decrease assets and decrease stock- holders' equity.Which of the following statements concerning retained earnings is true?a. Retained earnings is the difference between revenues and expenses.b. Retained earnings is increased by dividends and decreased by net income.c. Retained earnings represents accumulation of the income that has not been distributed as dividends.d. Retained earnings is reported as a liability on the balance sheet.The Dividends account a) appears on the income statement along with the expenses of the business. b) is not a proper subdivision of retained earnings. c) is increased with debits and decreased with credits. d) must show transactions every accounting period.
- Payment of a divdend will : A. Decrease net income B. Increase net income C. Decrease retained earnings D. Increase retained earnings.All of the following will decrease retained earnings, except … a. Cash dividends b. Net loss c. Net income d. All of them will decrease retained earnings All of the following are reported in the retained earnings statement, except … a. Cash Dividends b. Net Income c. Net Loss d. Sales RevenueIf revenue exceeds expenses for the accounting period being measured, then we say the company realized/recognized a _________________. Group of answer choices net assets net loss net increase net income or net profit
- a. What is your company’s primary revenue, secondary revenue, and gains? b. What is your company’s primary expenses, secondary expenses, financial activity generated expenses, and losses? c. What is the revenue trend? Does the 10-K or 10-Q discuss primary revenues, as well as other revenue types? d. What do the accounting policies say in the annual report (footnotes) regarding the cost of revenue? What are the drivers to the cost of revenue and the trends?In which of the following cases will the business have Net profit ? a. Expenses are less than revenue b. Expenses are greater than income c. Expenses are equal to income d. Liabilities are greater than incomeWhen expenses exceed revenues in a given period,a. Stockholders’ equity will not be impacted.b. Stockholders’ equity will be increased.c. Stockholders’ equity will be decreased.d. One cannot determine the impact on stockholders’equity without information about the specific revenuesand expenses
