The Income Statement for the Year 2014 of Poole Co

question 254

Multiple Choice

The income statement for the year 2014 of Poole Co. contains the following information: At January 1, 2014, Poole reported Retained Earnings of $50,000. Dividends for the year totalled $10,000. At December 31, 2014, the company will report Retained Earnings of

• A) $17,500.
• B) $37,500.
• C) $40,000.
• D) $42,500.

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Definitions:

Cost Avoidance

Involves actions taken to prevent or reduce potential increases in costs, helping to control future expenses without necessarily resulting in immediate savings.

Process Cost Savings

Process cost savings refer to reducing expenses involved in the operations of a business or production process, often achieved through efficiency improvements or negotiation.

Investment Recovery

The process of recouping the value of assets no longer needed by an organization, either through sale, recycling, or reuse.

Green Purchasing

The procurement of products and services that cause minimal environmental impact, supporting sustainability goals.