On December 31, 2010, the Balance in Retained Earnings Is

question 121

Multiple Choice

On December 31, 2010, the balance in retained earnings is $20,000. On December 31, 2011, the balance in retained earnings is $19,100. During 2011, dividends of $4,000 were declared and paid. What is the amount of net income for 2011?

• A) $4,900
• B) $3,100
• C) $900
• D) $(900)

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Definitions:

Physiological Reactions

Physical responses of the body to internal or external stimuli, such as increased heart rate or sweating.

Emotional Reactions

Immediate responses to stimuli or events that are characterized by strong feelings, ranging from joy and love to anger and fear.

Sympathetic Arousal

The state of heightened physiological activity that prepares the body for action, part of the "fight or flight" response.

Parasympathetic Inhibition

The reduction of activity in the parasympathetic nervous system, which may result in increased arousal or decreased bodily functions associated with rest and digestion.