If Service Revenue Is $260,000, Total Expenses Are $175,000, Additional

question 47

Multiple Choice

If service revenue is $260,000, total expenses are $175,000, additional capital stock issued of $13,000 and dividends declared are $4,000, what is the change in retained earnings as a result of the closing process?

• A) an increase of $260,000
• B) an increase of $81,000
• C) an increase of $4,000
• D) an increase of $9,000

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Definitions:

Check Register

A record-keeping tool used to track checks written, deposits made, and the current balance of a checking account.

Bank Statement

A document issued by a bank that summarizes a customer's financial transactions and balance over a specific period.

Service Charge

A fee collected for services provided, often added to bills in restaurants, hotels, or banking services.

Reconciled Balance

The balance of an account after accounting discrepancies have been resolved and all entries have been made.