choose the correct answer

#1: - Which of the following is true?

- The balance sheet is prepared first so the statement of retained earnings and income statement can be prepared.

- The income statement is prepared first so the statement of retained earnings and the balance sheet can be prepared.

- The statement of retained earnings is prepared first so the balance sheet and income statement can be prepared.

- none of the above

#2: - American Corp records an expense twice. What happens to net income?

- It is overstated.

- It is understated.

- Only the expenses account is overstated.

- There is no impact to the income statement.

#3: - American Corp forgets to adjust for supplies used at year end. What happens to net income?

- It is overstated

- It is understated.

- Only the expenses account is overstated.

- There is no impact to the income statement.

#4: - American Corp forgets to adjust for supplies used at year end. What happens to current assets?

- It is overstated

- It is understated.

- Only the expenses account is changed.

- There is no impact to the income statement or balance sheet.