Which financial statement shows the distributions to owners for the period, also known as dividends?

Dividend Statement

Statement of Operations

Balance Sheet

Income Statement

Statement of Retained Earnings

Is a decrease in the cash account recorded as a debit or a credit?

Debit

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

$110 million

$95 million

$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?

Dr Subscription Revenue $12,000; Cr Unearned Subscription Revenue $12,000

Dr Subscription Revenue $1,000; Cr Unearned Subscription Revenue $1,000

Dr Unearned Subscription Revenue $12,000; Cr Subscription Revenue $12,000

Dr Unearned Subscription Revenue $1,000; Cr Subscription Revenue $1,000