The closing process includes a transfer of the Dividends account balance to the Retained Earnings account True or False False True Which of the following statements about adjustments is correct? Multiple Choice An accrual adjustment that increases an asset will include an increase in an expense. A deferral adjustment that decreases an asset will include an increase in an expense. An accrual adjustment that increases an expense will include an increase in assets. A deferral adjustment that increases a contra-account will include an increase in an asset. Which of the following statements about an adjusted trial balance is correct? Multiple Choice It is used to prepare financial statements It is prepared to ensure assets equal liabilities It is prepared at the beginning of the year. It is prepared before the adjusting journal entries have been made. Dividends: Multiple Choice are an expense of doing business. are a legal obligation that a company must pay annually. are reported only on the statement of retained earnings. are reported on the balance sheet. Protecting against theft of assets and enhancing accounting information is the objective of Multiple Choice loan covenants. government regulations. internal controls the external auditors