The Retained Profits of Franko Ltd at the Beginning of the Year

question 26

Multiple Choice

The retained profits of Franko Ltd at the beginning of the year were $270 000 and at the end of the year $320 000.Net profit after tax for the year was $510 000.During the year,$100 000 was transferred to general reserve.The proposed final dividend at the beginning of the year was $200 000 and at the end of the year $250 000.What was the amount of interim dividend paid during the year?

• A) $110 000
• B) $160 000
• C) $260 000
• D) $360 000

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Definitions:

Financial Statements

Summarized records of a company's financial activities, including the balance sheet, income statement, and cash flow statement, presented over a specific period.

Adjusting Entry

An entry recorded in the books at the period's end to assign earnings and outlays to the correct period.

Liability Account

An accounting record that reflects the amounts a company owes to others, such as loans payable, accounts payable, bonds payable, etc.

Revenue in Advance

Income received by a business for services or goods that will be provided in the future; also known as unearned revenue.