investors and creditors . academic researchers . central government planners 2-
- If the retained earnings account increases from the beginning of the year to the end of the year , then
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 .