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:

Perception

The process by which individuals organize and interpret their sensory impressions to give meaning to their environment.

Disinhibition

The weakening of inhibitions or constraints by observing the behavior of a model.

Observational Learning

A learning process where individuals learn by watching the behaviors of others and the consequences of those behaviors, as proposed by Albert Bandura.

Reinforcement

In behavioral psychology, a process that increases the likelihood of a behavior by applying a stimulus after the behavior occurs.