AC4 - Another asset account is decreased by the same...

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1. During its first year, a corporation had revenues of $100,000 and also had the following changes: (1) assets increased by $20,000, (2) liabilities decreased by $10,000, and (3) paid-in capital increased by $25,000. What is the corporation's expenses for the year? (Points: 1) $95,000 $115,000 $135,000 $155,000 2. A certain transaction affecting only two accounts causes an asset to decrease by a certain amount. Which one of the following could be another effect of the same transaction? (Points: 1) A paid-in capital account is increased by the same amount. An expense account is increased by the same amount (which decreases owners' equity).
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Unformatted text preview: Another asset account is decreased by the same amount. A revenue account is increased by the same amount (which increases owners' equity). 3. Which one of the following appears on an income statement? (Points: 1) Cash Net Income Common Stock Accounts Payable 4. Which financial statement is often combined with the statement of retained income in a single statement format? (Points: 1) balance sheet income statement statement of cash flows 5. A company's __________ decides when and how much will be paid in dividends. (Points: 1) upper level management independent auditors board of directors stockholders...
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