Which of the Following Statements About Financial Statement Information Is

question 73

Multiple Choice

Which of the following statements about financial statement information is correct?

• A) If a company has total revenues of $80,000, total expenses of $50,000 and dividends of $10,000, they will have net income of $20,000.
• B) A company with total stockholders' equity of $45,000 and total assets of $75,000 must have total liabilities of $120,000.
• C) A company with liabilities of $80,000 and stockholders' equity of $50,000 will have Assets of $30,000.
• D) A company with total stockholders' equity of $120,000 and common stock of $75,000 must have total retained earnings of $45,000.

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Definitions:

Small Employers

Businesses with a relatively small number of employees, which may face different challenges and regulatory standards than larger organizations.

Manufacturing Companies

Businesses involved in the production of goods in large quantities, typically using machinery and involving the assembly of components or the processing of raw materials.

AFL-CIO Split

The division within the American Federation of Labor and Congress of Industrial Organizations, a major trade union center in the United States, often referring to historical rifts or disputes leading to the creation of separate labor federations.

Craft

Refers to occupations or trades that require specialized skills, usually manual, learned through training or apprenticeship.