The evaluation of company performance and financial condition includes evaluation of (1) past and current performance, (2) current financial position, and (3) future performance and risk.

A stockholder’s investment increases equity via net income.

The dollar change for a comparative financial statement item is calculated by:

An expense account is normally closed by debiting Income Summary and crediting the expense account.

Adjusting entries are made after the preparation of financial statements.

A trial balance prepared after adjustments have been recorded is called a(n):

The revenue recognition principle: 

The full disclosure principle:

The dividends account normally has a debit balance.

The revenue recognition principle: