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Question 5 (1 point) Credits represent increases in dividends increases in expenses decreases in assets reductions in revenues Question 6 (1 point) Under generally accepted accounting principles (GAAP), the income statement measures accrual income over a period of time accrual income at a point in time cash income over a period of time cash income at a point in time Question 3 (1 point) Purchasing inventory on account for $56,000, selling 80% of the inventory for $90,000, and paying $40,000 on account for the inventory would have which one of the following impacts on the income statement? revenues $90,000, cost of goods sold $44,800 revenues $90,000, cost of goods sold $56,000 revenues $72,000, cost of goods sold $40,000 revenues $72,000, cost of goods sold $44.800 Question 4 (1 point) Retained earnings is best described as shareholders' total claim on the assets of the business cash available to shareholders accumulated income not disbursed to owners income less dividends for the year Question 1 (1 point) Chatham Inc.'s accounting records show that, in the year 20X2, revenues earned were $97.000 and cash payments by customers were $86,000. Expenses were $56,000, of which $45,000 was paid in cash. Chatham declared a dividend of $5,000 of which$3,600 had been paid by the year-end. If Chatham 's opening cash was $4,000 and opening retained earnings were $2,000, what were the company's ending retained earnings and cash balances? $38,000 and $41,400 $46,000 and $44,600 $36,000 and $45,000 $162,000 and $136,600 Question 2 (1 point) Debits represent decreases in liabilities increases in equity increases in revenues decreases in assets