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:

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity, including the balance sheet, income statement, and cash flow statement.

GAAP

Generally Accepted Accounting Principles, a common set of accounting rules and standards for financial reporting.

Material Departure

A significant deviation or divergence from expected, customary, or defined standards or practices, often in financial reporting or auditing.

SEC

The Securities and Exchange Commission, a U.S. government agency responsible for regulating the securities markets and protecting investors.