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:

Critical Thinking

The intellectual discipline of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and evaluating information to make reasoned judgments.

Conceptual Skill

The ability to understand complex situations and devise strategic solutions, critical for high-level planning and decision-making.

Organization

A structured group of people who come together to achieve common goals through a coordinated effort.

Manager

A manager is someone responsible for directing and controlling the work and staff of a business, or a part of a business, to achieve set objectives.