Retained Earnings at the Beginning and Ending of the Period

question 118

Multiple Choice

Retained Earnings at the beginning and ending of the period were $650 and $1,400, respectively. If revenues were $2,500 and dividends paid to stockholders were $550, what was the amount of expenses for the period?

• A) $1,750.
• B) $750.
• C) $1,950.
• D) $1,200.

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Definitions:

Liquidity

The ability of a company to pay obligations expected to be due within the next year.

Dividend Payments

Dividend payments are distributions of a portion of a company's earnings, decided by the board of directors, to its shareholders.

Trend Analysis

The practice of collecting information and attempting to spot a pattern, often used in financial markets or statistical data analysis.

Horizontal Analysis

An analytical method in financial statements analysis where amounts in a series of financial statements are compared line by line to detect changes and trends over different periods.