The Income Statement for the Month of June, 2015 of Camera

question 149

Multiple Choice

The income statement for the month of June, 2015 of Camera Obscura Enterprises contains the following information: At June 1, 2015, Camera Obscura reported retained earnings of $35,000. The company had no dividends during June. At June 30, 2015, the company will report retained earnings of

• A)$29,300.
• B)$35,000.
• C)$36,300.
• D)$42,000.

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Definitions:

Year 2

Refers to the second year of a specific period, often used in the context of financial and performance analysis over time.

Absorption Costing

A method in accounting that adds all the manufacturing-related expenses like direct materials, direct labor, and all types of overhead (both variable and fixed) to the cost of a product.

Net Operating Income

Profit generated from a company's core business operations, excluding costs and income from non-operational activities.

Operating Loss

A situation where a business's total expenses exceed its revenues, not accounting for interest or taxes.