The Following Information Is Available for the Travis Travel Agency

question 61

Multiple Choice

The following information is available for the Travis Travel Agency. After the closing entries have been journalized and posted, what will be the balance in the Retained Earnings account? $$\begin{array} { | l | r | } \hline \text { Total reverues } & \$ 125,000 \\\hline \text { Total expenses } & 60,000 \\\hline \text { Retairied earnirgs } & \mathbf { 8 0 , 0 0 0 } \\\hline \text { Dividends } & 15,000 \\\hline\end{array}$$

• A) $65,000
• B) $80,000
• C) $130,000
• D) $145,000
• E) $280,000

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Definitions:

Amalgamation

The process of combining two or more companies into a single entity, often to achieve operational efficiencies or strategic objectives.

Merger

The merging of two or more corporations into a single entity, where one company is entirely taken over by another.

Acquisition

The process by which one company purchases most or all of another company's shares to take control.

Synergy

The belief that the combined strength and efficiency of two unified companies will exceed the total of their individual contributions.