At the End of 20X3, Libby Company Reported an Ending

question 71

Multiple Choice

At the end of 20X3, Libby Company reported an ending balance for retained earnings of $50,000. During 20X4, the company reported the following amounts: dividends declared and paid $30,000, and profit $40,000. The 20X4 retained earnings account should report an ending balance of

• A) $60,000.
• B) $80,000.
• C) $90,000.
• D) $100,000.

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Definitions:

Consideration

The value promised to be transferred in a contract, making it legally binding.

Endorse

To give one's public approval or support to someone or something, or to sign a document thus validating it.

Bill of Exchange

A written, unconditional order by one party directing another party to pay a specified sum of money to a third party on demand or at a set date.

Call for Tenders

A formal invitation to suppliers to bid on supplying goods or services under specified conditions.