ACC 557 TUTOR Education Terms/acc557tutor.com ACC 557 TUTOR Education Terms/acc557tutor.com | Page 8

net income is less than dividends. a net loss is less than dividends. the company must have sold stock. net income is greater than dividends 3-If an individual asset is increased, then there must be an equal decrease in a specific liability. there must be an equal decrease in stockholders’ equity. there must be an equal decrease in another asset. any of these is possible 4-The accounting process is correctly sequenced as identification, recording, communication. recording, communication, identification. communication, recording, identification. identification, communication, recording. 4- If total assets equal $345,000 and total stockholders’ equity equal $120,000, then total liabilities must equal $465,000. There is not enough information given to determine this. $225,000. $120,000.