The Following Information Relates to the Smith Company What Is the Unadjusted January 1, 2010, Balance in Retained

question 18

Multiple Choice

The following information relates to the Smith Company: $\begin{array}{ll}2010 \text { cash dividend declared } & \$ 400 \\\text { Unadjusted (reported) retained eamings, January 1, 2010 } & ? \\2010 \text { net income } & 480 \\\text { Error in 2009-Understatement of ending inventory, } \\\text { error found in 2010 } & 150\\\text { Unadjusted (reported) retained earnings, December 31, } 2010& 1,400\end{array}$ What is the unadjusted January 1, 2010, balance in retained earnings?

• A)$1, 170
• B)$1, 320
• C)$1, 470
• D)$1, 630

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Definitions:

Weighted Average

A calculation that takes into account the different weights or importance of some elements in a data set, providing a mean value that reflects these weights.

Standard Deviation

A numerical indicator that calculates the degree of spread or deviation of data points from their average.

Payoffs

The outcomes or benefits received from a particular action or decision, often used in the context of game theory.

Standard Deviation

A measure of the dispersion or variation in a set of values, indicating how much they deviate on average from the mean.