The First Year of Operations for a Company Was Year

question 168

Multiple Choice

The first year of operations for a company was Year 1.The net income for the year Year 1 was $20,000 and dividends of $12,000 were paid.In Year 2, the company reported net income of $34,000 and paid dividends of $5,000.At the end of Year 1, the company had total assets of $150,000.At the end of Year 2, the company had total assets of $240,000.
-Use the information above to answer the following question.What was the amount of retained earnings at the end of Year 1?

• A) $20,000.
• B) $8,000.
• C) $150,000.
• D) $155,000.

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Definitions:

Accommodation

In cognitive psychology, the process of adjusting one's existing cognitive structures in response to new information.

Psychosocial Stages

Psychosocial stages are a theory proposed by Erik Erikson, outlining eight stages of psychological development through which a person ideally progresses from infancy to old age.

Erikson

A developmental psychologist known for formulating the theory of psychosocial development, which outlines eight stages of human growth and development.

Industry Versus Inferiority

A stage in Erik Erikson's theory of psychosocial development where children develop a sense of competence through the mastery of tasks.