73. ABC accounts for bad debts using the allowance method. On 6/1, ABC wrote off DE's $2,500 account. What effect will this write-off have on ABC's balance sheet at the time of the write-off?
    1. A decrease to assets and a decrease to stockholders' equity.
    2. An increase to stockholders' equity and a decrease to liabilities.
    3. No effect.
    4. An increase to assets and an increase to stockholders' equity.

74. Unearned revenue
    1. Is a unique type of liability account B) Is a regular liability account

C) Is a regular income account D) Is a unique type of income account

75. The ending Retained Earnings balance of ABC increased by $3.2 million from the beginning of the year. The company declared a dividend of $1.3 million during the year. What was the net income earned during the year?
    1. $3.2 million. B) $1.3 million. C) $1.9 million. D) $4.5 million.

76. Which of the following statements regarding liquidity ratios is true?
    1. A high working capital generally indicates the ability to pay current liabilities on a timely basis.
    2. A low acid-test ratio generally indicates the ability to pay current liabilities on a timely basis.
    3. All current assets are due within one year and therefore have essentially equal liquidity.
    4. A low current ratio generally indicates the ability to pay current liabilities on a timely basis.

77. The year end adjusting entry for warranties Credits
    1. an asset B) an income account

C) an expense D) a liability