26) Choose one: A) It is possible for the Income Statement to balance B) The Income Statement always balances C) The Income Statement never balances

27) Consider the following list of accounts: Cash Retained Earnings Service Revenue Utilities Expense Salaries Expense Accounts Receivable Accounts Payable Common Stock Equipment Dividends How many of these accounts have a normal debit balance? A) Four. B) Five. C) Seven. D) Six.

28) After the Third STEP in the Operating Cycle the firm has? A) Inventory B) None of the other three C) Account Receivable D) Cash

29) The Income Statement always balances. A) False B) True

30) If a Trial Balance balances A) all account balances must be correct B) some account balances may be wrong