39. According to consistency convention, accounting principles should be: A. Consistent B. Variable C. Flexible D. Factual 40. One of the following is not an example of the materiality concept: A. Purchase of pencil recorded as an expense instead of including in stock B. Purchase of car for private use C. Purchase of plant for business D. Purchase of building to extend the business 41. The disclosure convention requires: A. Full disclosure of all material facts that can affect the financial statement. B. That profit should be realized. C, Matching of incomes and expenses for a particular period. D. The business to avoid being dissolved in the near future. 29. Ashley's Accessory Shop started the year with total assets of $210,000 and total liabilities of $120,000. During the year the business recorded $330,000 in revenues, $165,000 in expenses, and dividends of $60,000. The net income reported by Ashley's Accessory Shop for the year was 1. $120,000. 2. $150,000. 3. $195,000. 4. $165,000. 5. None of the above 30. As of January 1, 20XX, Elena's Store had a balance in its retained earnings account of $100,000. During the year Elena's Store had revenues of $80,000 and expenses of $45,000. In addition, the business paid cash dividends of $20,000. What is the balance in Retained Earnings at December 31, 20XX for Elena's Store? 1. $100,000 2. $115,000 3. $135,000 4. $155,000 5. None of the above