Indicate all of the following statements that correctly describe net income. Net income ().
A. is equal to revenue minus expenses
B. is equal to revenue minus the sum of expenses and dividends
C. increases owners' equity
D. is reported by a company for a specific period of time
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Identify all correct answers. Distribution of cash dividends ().
A. decrease owners' equity
B. decrease net income
C. are recorded by debiting the Dividend Payable Account
D. are business expenses
The accounting reporting period agrees to the calendar year.
A. 对
B. 错
If the trial balance shows that the ledger is in balance, this means that the individual business transactions were recorded to the appropriate ledger accounts.
A. 对
B. 错
The most important output of the accounting cycle is the financial statements.
A. 对
B. 错