Henson Company Began the Year with Retained Earnings of $380,000

question 98

Multiple Choice

Henson Company began the year with retained earnings of $380,000.During the year, the company recorded revenues of $500,000, expenses of $380,000, and paid dividends of $40,000.What was Henson's retained earnings balance at the end of the year?

• A)$540,000
• B)$460,000
• C)$840,000
• D)$500,000

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Definitions:

Contract

A voluntary exchange of promises creating obligations that, if defaulted on, can be enforced and remedied in the courts.

Special Plan

A customized strategy or program designed to address specific objectives or requirements.

Serial Number

A unique identifier assigned to individual items, typically for tracking, identification, and inventory purposes.

Liability

The state of being legally responsible for something, particularly for debts or legal obligations.