Crawford Company Started the Year with $60,000 in Its Common

question 195

Multiple Choice

Crawford Company started the year with $60,000 in its Common Stock account and a credit balance in Retained Earnings of $44,000. During the year, the company earned net income of $48,000 and declared and paid $20,000 of dividends. In addition, the company sold additional common stock amounting to $28,000. As a result, the amount of its retained earnings at the end of the year would be

• A)$160,000.
• B)$72,000.
• C)$132,000.
• D)$100,000.

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Definitions:

Bounded Rationality

A concept suggesting that decision-making is limited by the information available, cognitive limitations of minds, and finite time to make decisions.

Product Development

The entire process of bringing a new product or service to the market.

Debug

The process of identifying, analyzing, and removing errors or bugs from computer software or hardware.

Prototype

An early sample, model, or release of a product built to test a concept or process or to act as a thing to be replicated or learned from.