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.