Before the Closing Entries Are Prepared,the Retained Earnings Balance in the Adjusted

question 113

Multiple Choice

Before the closing entries are prepared,the retained earnings balance in the adjusted trial balance is equal to:

• A)the balance of retained earnings at the beginning of the year.
• B)the balance of retained earnings after adding revenues and subtracting expenses but before subtracting dividends.
• C)the balance of retained earnings at the end of the year.
• D)the balance of retained earnings at the beginning of the next year.

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Definitions:

Tax Increase

A rise in governmental levies on income, property, sales, or transactions, designed to raise additional revenue for public spending.

Supply

The total amount of a specific good or service that is available to consumers in a given market at a given time.

Tax

A financial charge or other levy imposed upon a taxpayer by a governmental organization in order to fund various public expenditures.

Elastic

Describes a situation in economics where the demand or supply of a good or service significantly changes in response to a change in price.