holders equity on the statement of Financial c. Retained earnings is reported on the statement of earnings O d. Retained earnings represent earnings not distributed to shareholders in the form of dividende The primary purpose of hiring a public accounting firm to examine the financial statements of the company is Select one: O a to assure that no fraud has been committed by the company's management b. to provide credibility that the financial information conforms to international financial reporting standards in all materia respects O c. to detect all accounting errors made by the accounting system and employees. O d. not reflected in any of the other statements. SLH, Inc. reported the following information: 2020 December 31, 2019 10 LADA coe 210 attempted: 0/13 Which of the following statements is incorrect? Select one: O a. Retained earnings is increased by net earnings and decreased by a net loss. O b. Retained earnings is a component of shareholders' equity on the statement of financial position. O c. Retained earnings is reported on the statement of earnings. O d. Retained earnings represent earnings not distributed to shareholders in the form of dividends. wuhlic accounting firm to examine the financial stateme SLH, Inc. reported the following information: December 31, 2020 Total assets $150,000 Total liabilities 60,000 December 31, 2019 $104,000 40,000 SLH did not have any transactions affecting contributed capital in 2020. It declared dividends of $10,000 during 2020. Based on these details, SLH's net earnings for 2020 should be: Select one: O a. $20,000 O b. $36,000 O c. $26,000 O d. Cannot be determined without knowing the revenues and expenses for 2020. O b. $36.000 O c. $26.000 O d. Cannot be determined without knowing the revenues and expenses for 2020. An assumption inherent in the preparation of financial statements under the accrual basis of accounting holds that a business organization must associate its expenses for a period with the revenues it generates during the same period. What is the concept called? Select one: O a. Verifiability O b. Accounting entity O c. Continuity O d. Matching O d. Matching Not The qualitative characteristic comparability means that the usefulness of accounting information is enhanced it Select one: O a. the same accounting procedures should not be applied from year to year. O b. accounting data are supported by documents when possible. O c. accounting data are based on objective data and transactions. O d. similar accounting methods are applied across businesses and over time. Which of the following determines when revenues and expenses should be recorded under accrual accounting? Select one: O a relevance and representational faithfulness O b. the cost principle and the matching process O c. the revenue principle and the matching process O d. the revenue principle and the periodicity assumption. tempted: 0/13 If a company is successful in reducing selling and administrative expenses while maintaining sales volume and the sales price of its product, then the net profit margin ratio Select one: O a. will not change O b. will increase O c. will drecrease. O d. will either decrease or remain unchanged. O d. Matching No The qualitative characteristic comparability means that the usefulness of accounting information is enhanced Select one: a. the same accounting procedures should not be applied from year to year. O b. accounting data are supported by documents when possible. O c. accounting data are based on objective data and transactions. O d. similar accounting methods are applied across businesses and over time. Which of the following determines when revenues and expenses should be recorded under accrual accounting? Select one: O a relevance and representational faithfulness O b. the cost principle and the matching process O c. the revenue principle and the matching process O d. the revenue principle and the periodicity assumption