1. Declaring a dividend will:

A. Increase net income.

B. Increase the net worth of a company.

C. Not change net income.

D. Decrease net income.

2.

2. The concept of adequate disclosure:

A. Does not apply to events occurring after the balance sheet date.

B. Grants users of the financial statements access to a company's accounting records.

C. Specifies which accounting methods must be used in a company's financial statements.

D. Demands a "good faith effort" by management.