196. For a journal entry with only two lines, the following entry is valid:

Increase in Liability, Decrease in Dividends.

1. True B) False

197. ABC has net sales of $200,000, cost of goods sold of $120,000, selling expenses of $6,000, and nonoperating expenses of $2,000. What is the company's gross profit?

A) $74,000. B) $76,000. C) $72,000. D) $80,000.

198. ABC has net sales of $200,000, cost of goods sold of $120,000, selling expenses of $6,000, and nonoperating expenses of $2,000. What is the company's gross profit?

A) $80,000. B) $74,000. C) $72,000. D) $76,000.

199. Which of the following would result in an increase in the current ratio, but not necessarily the acid-test ratio?
     1. Increase in current assets B) Increase in quick assets

C) Decrease in current liabilities D) Decrease in current assets

200. Investors and Creditors are interested in which of these entries (more than one possible correct answer)?
     1. Adjusting Entries B) Closing Entries C) Transaction Entries