5. When using the accounting equation, in what way(s) can you calculate Stockholders Equity? o A) Assets + Liabilities o B.) Assets -Liabilities o C.) Common Stock+ Retained Eamings o D.) Common Stock-Retained Earnings a. A only b. A and D c. B and C d. C only 6. What is the formula for retained earnings? a. Beginning Retained Earnings Revenues Expenses Dividends b. Beginning Retained Earnings Revenues Expenses -Dividends c. Beginning Retained Earnings + Revenues Expenses Dividends d. Beginning Retained EarningsRevenues Expenses Dividends 7. Which account balance flows from the statement of stockholder's equity to the balance sheet? a. Dividends b. Retained Earnings c. Revenues d. Expenses 8. What is the effect on the accounting equation if an accountant forgets to credit Common Stock when recording a transaction? o Understated the balance is lower than is should be if all business transactions had been recorded properly o Overstated the balance is higher than is should be if all business transactions had been recorded properly a. Stockholders' Equity is overstated b. Stockholders' Equity is understated c. Assets are overstated d. Assets are understated 9. What is the purpose of recording adjusting entries? a. They are recorded during the accounting period to update the cash account accounts receivable. unrecognized revenues and expenses b. They aze recorded at the end of the accounting period to update c. They are recorded at the end of the accounting period to record d. They are never recorded