Which of the following is the body of principles that guides the financial accounting process used to create financial statements? Select one: a. GAAP (generally accepted accounting principles) b. GRASP (guidelines for reliable accounting standards and procedures) c. GRAPE (generally reliable accounting principles and ethics) d. AAASP (American Association of Accountants Standards and Principles). The balance sheet is organized to reflect the accounting equation. Which of the following is the accounting equation? Select one: a. Assets - Liabilities = Assets + Owners' Equity b. Assets Liabilities + Owners' Equity . Owners' Equity = Liabilities + Assets d. Liabilities Assets + Owners' Equity As the owner of 100 shares of Megabux Corporation's stock, Elbert Treble wants to know whether his company earned a profit or loss during the past year. He can find the answer to this by looking at which of the following of Megabux's financial statements? Select one: a. statement of cash flows b. master budget . income statement d. revenue report By subtracting dividends paid to shareholders from the net income, managers are able to calculate which of the following? Select one: a. a change in retained earnings b. an increase in net income . a decrease in profit margins d. a change in the cash balance in the firm's bank account