QUESTION 24 What effect will the following closing entry have on the retained earnings account? Service Revenue 18.800 Interest Expense 750 Operating Expenses 15,5001 Retained Earnings 2.550 Retained earnings will increase by $2.550. Retained earnings will be transferred to the income statement. Retained earnings will remain unchanged. Retained earnings will decrease by $2,550. None of the above. QUESTION 25 Accrual-basis accounting is superior to cash-basis accounting in that: there is only one method of preparing the operating activities of the statement of cash flows. it provides a better measure of profitability. the cash balance reported will be greater. a statement of cash flows is not needed. It keeps you guessing as to how much cash you actually have. QUESTION 26 Merle Industries had been selling its product for 556 per unit, but recently lowered the selling price to $33 per unit. The company's current inventor what amount should the company's inventory be reported on the balance sheet? 59570