The revenue recognition principle state that: Revenue should be recognized in the period the cash is received Revenue is a component of common stock Revenue should be recognized in the period goods and services provided. Revenue should be recognized in the balance sheet. The concept of matching in accounting refers to: All transactions are recorded at the exchange price. The business is separate from its owners. All costs that are used to generate revenue are recorded in the period the revenue is recognized. The business will continue to operate indefinitely unless there is evidence to the contrary. Of the following six accounts, which ones have temporary balances: Service Revenue Dividends Salaries Expense Common Stock Retained Earnings Cash (4), (5), and (6). (1), (2), and (3). (l), (3), and(5). (2), (4), and (5). Frosty Inc. has the following balances on December 31 prior to closing entries: Based upon the balances above, what net adjustment would be made to Retained Earnings due to closing entries Increase of SI 2,000. Increase of $14,000. Increase of S13,000. Increase of $ 11.000