Beta Company Was Founded in 2013

question 34

Multiple Choice

Beta Company was founded in 2013. Its yearly earnings and dividend payments are shown here: 2013: Profit of $4 000, paid zero dividends 2014: Profit of $20 000, paid $10 000 dividends
2015: Profit of $8 000, paid $5 000 dividends 2016: Loss of $22 000, paid zero dividends
At the end of 2016, what would be the balance in Retained earnings?

• A)Negative $5 000
• B)Positive $20 000
• C)Negative $22 000
• D)Positive $32 000

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Definitions:

Government Contracts

Agreements entered into by government entities and private companies or individuals for the provision of goods, services, or execution of works.

State Taxes

Taxes imposed by individual states in a country, which can include income, sales, property, and other forms of taxation.

Management Revolution

A transformative period or movement in the field of management that brings about significant changes in management practices, theories, and methodologies.

Economic Recessions

Periods of temporary economic decline during which trade and industrial activities are reduced, generally identified by a fall in GDP in two successive quarters.