Denmark Inc

question 67

Multiple Choice

Denmark Inc.is preparing a statement of stockholders' equity for 2019.On January 1,2019,Denmark started the year with a $100,000 credit balance in its retained earnings account.During 2019,the company earned net income of $70,000 and declared dividends of $10,000.Also,the company received cash of $15,000 as an additional investment by its owners.What is the balance in retained earnings on December 31,2019?

• A)$100,000.
• B)$170,000.
• C)$175,000.
• D)$160,000.

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Definitions:

Financial Information

Data regarding the economic activities and condition of an individual or organization, including income, expenses, assets, and liabilities.

Responsible Corporate Officer Doctrine

The Responsible Corporate Officer Doctrine is a principle that holds corporate executives and officers liable for the illegal actions of the corporation, even without direct involvement, if they had power to prevent the misconduct.

Strict Liability

A legal principle that holds an individual or entity responsible for damages or losses, regardless of fault or intention, often applied in product liability cases.

Absolute Liability

Absolute liability is a legal principle that holds an individual or entity responsible for their actions or products, without the necessity of proving negligence or fault.