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1. Which of the following statements about revenues and expenses is correct? If revenues are greater...

1. Which of the following statements about revenues and expenses is correct?

If revenues are greater than expenses, the company has net income and Retained Earnings decreases.

If revenues are less than expenses, the company has a net loss and Retained Earnings decreases.

If revenues are less than expenses, the company has a net loss and Common Stock increases to balance off the loss.

If revenues are greater than expenses, the company has net income and Common Stock increases.

2. After posting the adjusting entry to record revenues earned but not yet collected, which account will be increased?

Accounts Receivable

Unearned Revenue

Accounts Payable

Prepaid Revenue

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