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Problem 1: If a journal entry includes a debit or credit to the Cash account, it is most likely which of the following?
A. a closing entry
B. an adjusting entry
C. an ordinary transaction entry
D. outside of the accounting cycle
Problem 2: If a journal entry includes a debit or credit to the Retained Earnings account, it is most likely which of the following?
Problem 3: Which of these accounts would be present in the closing entries?
A. Dividends
B. Accounts Receivable
C. Unearned Service Revenue
D. Sales Tax Payable
Explain how adjusting entries provide for potential manipulation by managers. In addition, discuss how compensation arrangements may result in incentives for such manipulation to occur.
Why is the ex-dividend date important to stockholders? If a stock is sold on the exdividend date, who receives the dividend-the buyer or the seller? Explain.
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