A Company Distributed $612,000 3rd Quarter Dividends to Its 900,000

question 2

Multiple Choice

A company distributed $612,000 3rd quarter dividends to its 900,000 common shareholders and $150,000 to its 300,000 preferred shareholders. It recorded a net income of $1,520,000 for the same quarter. The closing balance of the periods' statement of Retained Earnings was a $1,287,000. It can be concluded that the opening balance on the Statement of Retained Earnings was

• A) $529,000
• B) -$233,000
• C) $233,000
• D) -$83,000
• E) $379,000

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Definitions:

Decision Lag

The time taken between identifying an economic issue and the implementation of policy to address it.

Progressive

In the context of taxation, it refers to a tax system where the tax rate increases as the taxable amount increases, often aimed at reducing income inequality.

National Debt

The total amount of money that a country's government has borrowed, through various means, and has yet to repay.

Recognition Lag

Recognition Lag is the time it takes for policymakers to identify an economic problem.