A Corporation Had a Net Increase in Retained Earnings of $65,000

question 114

Multiple Choice

A corporation had a net increase in retained earnings of $65,000 for the year.The corporation also paid $20,000 of cash dividends that had been declared in the previous year.This year,the corporation declared $18,000 of dividends but has not paid them as of year-end.Given this information,the net income for the current year must have been:

• A)$63,000
• B)$85,000
• C)$65,000
• D)$83,000

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Definitions:

Profit

The profit achieved when the revenue from business operations surpasses the combined total of expenses, costs, and taxes needed to maintain those operations.

Loss

Loss refers to the negative financial result that occurs when expenses exceed revenues or costs outweigh benefits in a transaction or operation.

Service

An intangible economic activity that satisfies a need or wants, often performed by humans or automated systems.

Ambience

The character and atmosphere of a place, often related to its visual and environmental qualities that contribute to its overall feel.