The Income Statement for the Month of June, 2011 of Taylor

question 44

Multiple Choice

The income statement for the month of June, 2011 of Taylor Enterprises contains the following information: $\begin{array}{lr}\text { Revenues }&&£7,000\\\text { Expenses: }\\\text { Wages Expense } & £ 2,000 \\\text { Rent Expense } & 1,000 \\\text { Supplies Expense } & 300 \\\text { Advertising Expense } & 200 \\\text { Insurance Expense } & 100\\\text { Total expenses }&&3,600\\\text { Net income (loss) }&&£(3,400) \end{array}$
At June 1, 2011, Taylor reported Retained Earnings of $£ 35,000$ . The company paid no dividends during June. At June 30, 2011, the company will report Retained Earnings of

• A) \( £ 35,000 \).
• B) \( £ 42,000 \).
• C) \( £ 38,400 \).
• D) \( £ 31,600 \).

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Definitions:

Seasonal Indexes

Factors used in time series analysis to adjust for regular seasonal variations in data.

Regression Technique

A statistical method used to model the relationship between a dependent (target) variable and one or more independent variables.

Linear Trend Line

A straight line that best fits the data points in a scatter plot, showing a linear relationship between variables.

Quadratic Model

A mathematical model in which the relationship between the independent variable and the dependent variable is represented by a second-degree polynomial equation.