During 2017, Its First Year of Operations, Jane's Bakery Had

question 52

Multiple Choice

During 2017, its first year of operations, Jane's Bakery had revenues of $130,000 and expenses of $66,000. The business paid cash dividends of $36,000. What is the balance in Retained Earnings at December 31, 2017?

• A)$0
• B)$36,000 debit
• C)$28,000 credit
• D)$64,000 credit

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Definitions:

Responsibility Accounting

An accounting system that measures the financial performance of different business segments or managers responsible for certain business operations.

Control

The process of monitoring and regulating processes or systems to ensure they meet established standards and objectives.

Cash Budget

A detailed plan showing how cash resources will be acquired and used over a specific time period.

Master Budget

A number of separate but interdependent budgets that formally lay out the company’s sales, production, and financial goals and that culminates in a cash budget, budgeted income statement, and budgeted balance sheet.