e for retained earnings of 7. At the end of 2018. Collin Company reported an ending balance s declared and paid 2013 the company reported the following amounts: Dividends declared ending balance for retained earnings of net income S0.000. The 2019 statement of stockholders equity should report an 8) S130,000 c) $170.000 D) S 40.000 . Which of the following statem A) A is the only ratio required to be disclosed on the the statements is true about earnings share of common stock? red to be disclosed on the income statement or in the footnotes to net income by weighted average common shares outstanding earnings on a per common share basis and is of great importance the statement B) it is computed by dividing net income by cji discloses the amount of earnings on a p to investors D) All of the above are true. 9. When converting revenues and expense es and expenses to cash received and paid under the direct method of caused by accruals and deferrals is classified as ne for cash flows from operating activities, the changes in revenues and expenses A) investing activities 8) financing activities C) operating activities D) all of the above activities are affected by accruals and deferrals 10. Which of the following errors would most likely lead to an overstatement of income? A) Recording revenue next period when the cash is collected although it is earned in the current year B) Recording an expense incurred this year when the cash is paid next year c) Failure to adjust deferred rent revenue account for the portion of rent earned this year D) None of the above leads to overstated income this period 11. Closing entries A) are required to reduce the balances in the nominal accounts to zero at the end of each period. B) transfer the components of net income to a stockholders' equity account each period. C) are required so that the income statement accounts will be prepared to collect revenue and expense amounts for the subsequent period. D) All of the above are correct. 12. At the end of 2015, the following data were taken from the accounts of Sante Fe Trading Company Contributed Capital $ 285,000 Retained earnings, beginning balance January 1, 2015 200,000 Total revenue earned during 2015 850,000 Total expenses incurred during 2015 790,000 Total cash collected during 2015 870,000 The 2015 closing entries would include a A) $80,000 net credit to Retained earnings. B) $80,000 net debit to Retained earnings. C) $60,000 debit to Retained earnings. D) $60,000 credit to Retained earnings. Before the closing entries were made at the end of 2019, the following data were taken from 13. 7. At the end of 2018 52 2018 CON C r eated an endine balance for retained ears of $150.000 2019the company reported the following amounts Dividends declared and paid, income, S40,000. The 2019 statement of stockholders' equity should report an Odoard net 0 ending balance for retained earnings of A) S190.000 B) $110.000 C) $170,000 D) $40,000 which of the following statements is true about earnings share of common the state required to be disclosed on the income statement or in the footnotes to A) It is the only ratio required to be B) it is computed by dividi c) dis h ed by dividing net income by weighted average common shares outstanding me amount of earnings on a per common share basis and is of great importance to investors. D) All of the above are true. converting revenues and expenses to cash received and paid under the direct method accounting for cash flows from operating activities, the changes in revenues and exper caused by accruals and deferrals is classified as A) investing activities B) financing activities C) operating activities D) all of the above activities are affected by accruals and deferrals 10. Which of the following errors would most likely lead to an overstatement of incomer AV Recording revenue next period when the cash is collected although it is earned in the current year B) Recording an expense incurred this year when the cash is paid next year c) Failure to adjust deferred rent revenue account for the portion of rent earned this year D) None of the above leads to overstated income this period 11. Closing entries A) are required to reduce the balances in the nominal accounts to zero at the end of each period. B) transfer the components of net income to a stockholders' equity account each period. c) are required so that the income statement accounts will be prepared to collect revenue and expense amounts for the subsequent period. D) All of the above are correct. 12. At the end of 2015, the following data were taken from the accounts of Sante Fe Trading Company Contributed Capital $ 285,000 Retained earnings, beginning balance January 1, 2015 200,000 Total revenue earned during 2015 850,000 Total expenses incurred during 2015 790,000 Total cash collected during 2015 870,000 The 2015 closing entries would include a A) $80,000 net credit to Retained earnings. B) $80,000 net debit to Retained earnings. C) $60,000 debit to Retained earnings. D) $60,000 credit to Retained earnings. Before the closing entries were made at the end of 2019, the following data were taken from