16. Financial statements prepared under GAAP use: A. Cash Accounting B. Managerial Accounting C. Tax Accounting D. Accrual Accounting Chapter 4: 17. Which of these statements is regarding changes between the beginning equity and ending equity for a period is false: A. Net income will increase Ending Equity B. New Shares issued will increase Ending Equity C. Dividends paid will increase Ending Equity D. Repurchased Shares will decrease Ending Equity 18. As of the end of its accounting period, December 31, Year 1, Great Plains Company has assets of $900,000 and liabilities of $300,000. During Year 2, stockholders invested an additional $40,000 and received $20,000 in dividends from the business. What is the amount of net income during Year 2, assuming that as of December 31, Year 2, assets were $995,000, and liabilities were $295,000? A. $60,000 B. $100,000 C. $80,000 D. $600,000 19. An economic transaction consisting of equal debits and credits is recorded in a: AT account B. ledger C. journal entry D. Trial balance 20. Posting is the process of transferring the debits and credits from the journal entries to the individual accounts found in the: A. ledger B. Notes C. journal D. posting sheet