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:

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs.

Regulation

Rules or directives made and maintained by an authority to regulate behavior or achieve an outcome.

Marginal Cost Price

The cost incurred by producing one additional unit of a product, critical for decision-making in pricing and production levels.

Monopolist

A single seller in a market who has significant control over the supply of a particular product or service and can exert considerable influence over the market price.