Benedict Company Compiled the Following Financial Information as of December

question 8

Multiple Choice

Benedict Company compiled the following financial information as of December 31 2022: $$\begin{array} { l r } \text { Service revenue } & \$ 1,120,000 \\\text { Common stock } & 240,000 \\\text { Equipment } & 320,000 \\\text { Operating expenses } & 1,000,000 \\\text { Cash } & 280,000 \\\text { Dividends } & 80,000 \\\text { Supplies } & 40,000 \\\text { Accounts payable } & 160,000 \\\text { Accounts receivable } & 400,000 \\\text { Retained earnings, } 1 / 1 / 22 & 600,000\end{array}$$ Benedict's retained earnings on December 31 2022 are

• A)$600000.
• B)$720000.
• C)$640000.
• D)$ 40000.

---

Definitions:

Judicial Bodies

Courts or other tribunals that are empowered to adjudicate legal disputes and administer justice.

Administrative Agencies

Governmental bodies responsible for implementing, administering, and enforcing laws and regulations in specific areas of public policy.

Enabling Statute

A law that gives a government entity or agency the authority to take certain actions or enforce specific regulations.

Legislative Rules

Regulations established by a government's legislative body to interpret and implement statutory laws.