During 2014, Its First Year of Operations, Jane's Bakery Had

question 152

Multiple Choice

During 2014, its first year of operations, Jane's Bakery had revenues of $65,000 and expenses of $33,000. The business paid cash dividends of $18,000. What is the balance in Retained Earnings at December 31, 2014?

• A) $0
• B) $18,000 debit
• C) $14,000 credit
• D) $32,000 credit

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Definitions:

Quantity Demanded

The amount of a product consumers are willing and able to purchase at a specific price.

Law of Demand

A fundamental principle in economics that describes the inverse relationship between the price of a good or service and the quantity demanded by consumers, holding other factors constant.

Quantity Demanded

The aggregate quantity of a product or service buyers are prepared to buy at a certain price point, within a specific timeframe.

Demand

The desire to purchase goods and services backed by the ability and willingness to pay, at a given price level within a specific time period.