After Preparing the Financial Statements for the Current Year, the Accountant

question 67

Multiple Choice

After preparing the financial statements for the current year, the accountant for Exquisite Gems closed the Dividends account at year-end by debiting Income Summary and crediting the Dividends account. What is the effect of this entry on current-year net income and the balance in the Retained Earnings account at year-end?

• A) Net income is overstated and the balance in the Retained Earnings account is correct.
• B) Net income is correct and the balance in the Retained Earnings account is overstated.
• C) Net income is understated and the balance in the Retained Earnings account is understated.
• D) Net income is understated and the balance in the Retained Earnings account is overstated.

Recognize the importance of environmental factors and community infrastructure in disease prevention.

Understand the historical development of public health initiatives and their impact on community health.

Analyze the role of government and non-governmental organizations in the advancement of public health.

Identify key figures and their contributions to public health and nursing.

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Definitions:

Organizational Stakeholders

Individuals or groups that have an interest or concern in the performance and decisions of an organization, such as employees, customers, suppliers, and investors.

Role Senders

Individuals or groups that have expectations about the behavior and performance of others in specific positions.

Directly Affected

Individuals or entities that experience the immediate consequences or benefits of an action or decision.

Economic Responsibility

The obligation of an organization to act in ways that serve both its own interests and the interests of its stakeholders, ensuring its actions maintain or enhance the economic status and conditions of its stakeholders.