Atlantic Corporation Reported the Following Amounts at the End of the First

question 98

Multiple Choice

Atlantic Corporation reported the following amounts at the end of the first year of operations: common stock $200,000; sales revenue $800,000; total assets $600,000; dividends declared $40,000; and total liabilities $320,000. What are Atlantics' retained earnings at the end of the year and what amount of expenses were incurred during the year?

• A) Retained earnings are $80,000 and expenses incurred totaled $680,000.
• B) Retained earnings are $80,000 and expenses incurred totaled $720,000.
• C)Retained earnings are $280,000 and expenses incurred totaled $480,000.
• D)Retained earnings are $280,000 and expenses incurred totaled $520,000.

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Definitions:

Pavlov

Refers to Ivan Pavlov, a Russian physiologist known for his work in classical conditioning, particularly his experiments with dogs that led to the discovery of the conditioned reflex.

Conditioned Stimulus

A previously neutral stimulus that, after association with an unconditioned stimulus, comes to trigger a conditioned response.

Conditioned Response

A learned reaction to a specific stimulus as a result of conditioning, demonstrated in Pavlov's experiments with dogs.

Tone

The quality or character of sound, or in literature, the author's attitude towards the subject or audience.