1.)The net income will cause a change in which component of stockholders' equity?

Accumulated Other Comprehensive Income

Paid-in Capital

Retained Earnings

Common Stock

2).What are the three main financial reports used in managing a business?

Balance Sheet, Profit and Loss, Statement of Cash Flows

Balance Sheet, Profit and Loss, Accounts Payable Aging

Profit & Loss, Accounts Payable Aging, Accounts Receivable Aging

Balance Sheet, Profit & Loss, Budget vs Actual

3).ABC Company Inc. operates on accrual basis accounting. In June 2023, they paid $5,000 to have a booth at an industry conference in December 2023 to attract the attention of potential customers. How should this expense be handled with the June close?

Recognized fully in June, as a Conference Expense

Recognized evenly over the months of June-December, as a Conference Expense, with the Prepaid Expense account holding the interim balance.

Recorded to Prepaid Expense fully in June, with the full balance being released in December as a Conference Expense.

Recognized fully in June, as a Sales & Marketing Expense