Which one of the following statements is true?

	a.	The audit committee provides contact between the board of directors and the key officers of the company.
	b.	The audit committee has become less involved in the financial accounting system as a result of the Foreign Corrupt Practices Act.
	c.	The audit committee is a board of directors subset that acts as a direct contact between the stockholders and the independent accounting firm.
	d.	The board of directors consists of the company's external auditors.

Which of the following accounts is notclosed to Income Summary at the end of the accounting period?

	a.	Rent Expense
	b.	Service Revenue
	c.	Unearned Revenue
	d.	Supplies Expense

Guinther & Sons, Inc. Guinther & Sons, Inc. a retailer of mens clothing, earned a net profit of $77,000 for 2016. The balance sheet for Guinther & Sons includes the following items:

	Cash	$29,000		Accounts receivable	$39,000
	Inventory	79,000		Prepaid insurance	3,000
	Land	90,000		Accounts payable	14,000
	Taxes payable	29,000		Capital stock	50,000
	Retained earnings	97,000		Long-term notes payable	43,000

Read the information about Hopper. Inc. Which statement best represents Hoppers performance?

	a.	Hoppers profit margin ratio decreased.
	b.	Hopper has become more profitable.
	c.	Hoppers increase in operating revenues increased the companys net income.
	d.	Hoppers operating expenses as a percentage of operating revenues remained the same.