Which financial statement shows the distributions to owners for the period, also known as dividends? O Dividend Statement O Statement of Operations O Balance Sheet O Income Statement O Statement of Retained Earnings Is an increase in the inventory account recorded as a debit or a credit? O Debit O Credit During the year, Royal company earned revenues of $400 million. Expenses incurred totaled $320 million. The company collected all but $15 million of the revenues earned and paid $30 million of its expenses in cash. Under the accrual basis of accounting, what would the company report as net income? $80 million O $110 million O $95 million O $400 million On October 1, Year 1, Sparky Co. Magazine sold one-year subscriptions in advance, collecting a total amount of $12,000 upfront. What is the required adjusting journal entry at the end of the month? O Dr Subscription Revenue $12,000; Cr Unearned Subscription Revenue $12,000 O Dr Subscription Revenue $1,000; Cr Unearned Subscription Revenue $1,000 Dr Unearned Subscription Revenue $12,000; Cr Subscription Revenue $12,000 O Dr Unearned Subscription Revenue $1,000; Cr Subscription Revenue $1,000 Which of the following options is not a characteristic of adjusting entries? Involves the recording of a revenue or expense O Includes one balance sheet account and one income statement account O Always includes cash O Made at the end of the period