1. Using a spreadsheet with the indirect method, entry (a) records net income as the first item on the spreadsheet in the Operating Activities section, with the corresponding entry as a debit to...

1.Using a spreadsheet with the indirect method, entry (a) records net income as the first item on the spreadsheet in the Operating Activities section, with the corresponding entry as a

1. debit to Retained Earnings.


2. credit to Retained Earnings.


3. credit to Income Summary.


4. debit to Cash.

2.As you complete the spreadsheet to account for all the changes in the noncash accounts that occurred during the current period, you are

1. constructing entries that will need to be journalized and posted when the spreadsheet is complete.


2. reconstructing the journal entries that caused the changes in the noncash accounts.


3. undoing the journal entries that caused the changes in the noncash accounts.


4. doing none of these choices.