Dreyfuss Corporation Reports the Following Items: Unappropriated Retained Earnings, Beginning

question 83

Multiple Choice

Dreyfuss Corporation reports the following items: Unappropriated retained earnings, beginning of year: $800,000
Net income: 700,000
Federal income tax refund for last year taken directly to retained earnings: 50,000
Cash dividends paid this year: 500,000
The unappropriated retained earnings at year-end are

• A) $1,000,000.
• B) $1,050,000.
• C) $1,500,000.
• D) $2,050,030.

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Definitions:

Capital

Financial assets or the financial value of assets, such as funds held in deposit accounts or funds obtained from special financing sources.

Labor

The utilization of human physical and intellectual capacities in the generation of goods and services.

Plausible

Seeming reasonable or probable under the circumstances.

Production Function

A mathematical model that describes the relationship between inputs used in production and the resultant output.