Safari File Edit View History Bookmarks Window Help > Take Test: Bb Week 6 Test 3 - 22SP ACCT 20... Sat Feb 19 10:26 AM regent.blackboard.com Harley Company Has Provided The Following... + 88 The Nellie Company Has Provided The Followi... G screenshot on mac - Google Search plates Which of the following statements does not accurately describe the effect of the sale of inventory at a profit on the financial statements? Income from operations and current assets both increase. Current assets do not change and stockholders' equity increases. Operating income and gross profit both increase. Net income and earnings per share both increase. emes QUESTION 33 Which of the following statements does not correctly describe the allowance for doubtful accounts balance? It is created as a result of the adjusting entry to record bad debt expense. It is a contre-asset account. It is reported on the balance sheet as a component of current assets. It is reported on the balance sheet as a stockholders' equity account. QUESTION 34 Which of the following statements does not correctly describe the relationship between the income statement and the ending retained earnings balance? Net income increases the ending balance of retained earnings. A net loss does not affect the ending retained earnings balance. Net income and not loss both affect the ending retained earnings balance. A net loss decreases the ending retained earings balance. QUESTION 35 Which of the following statements is false? The Securities & Exchange Commission (SEC) requires publically traded companies to have their financial statements audited by an independent accountant. The external auditors are selected by the Securities & Exchange Commission (SEC). The board of directors meets with the external auditors to discuss management's compliance with their financial reporting obligations. The external auditors assume some responsibility with respect to the fairness of the financial statements. QUESTION 36 Which of the following statements is inaccurate with respect to the total asset turnover ratio? The ratio is calculated as sales revenues divided by total assets at year-end. The ratio is decreased when additional inventory is purchased. A high ratio implies efficient management of assets. T Click Save and Submit to save and submit. Click Save All Answers to save all answers. tv NA 2.38 points Save Answer 2.38 points Save Answer 2.38 points Save Answer 2.38 points Save Answer Save All Answers Save and Submit Create