Albert Company Reported the Following Statement of Financial Position Amounts

question 36

Multiple Choice

Albert Company reported the following statement of financial position amounts at December 31, 20X2: $$\begin{array} { | l | r | } \hline \text { Current assets } & \$ 70,000 \\\hline \text { Current liabilities } & 40,000 \\\hline \text { Long-term liabilities } & 90,000 \\\hline \text { Operational assets } & 200,000 \\\hline \text { Common shares (10,000 shares issued) } & 100,000 \\\hline\end{array}$$ What was the total amount of retained earnings on December 31, 20X2?

• A) $20,000
• B) $30,000
• C) $40,000
• D) $50,000

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Definitions:

Variable Selling

Costs associated with selling that vary directly with the level of sales activity.

Administrative Costs

Administrative costs are expenses related to the general operations of a business, including salaries of office staff, utilities, and rent.

Absorption Approach

A costing method in which all of the manufacturing costs, including both fixed and variable manufacturing costs, are absorbed into the cost of a unit of product.

Joint Products

Two or more products that are generated from a common input or production process.