The Retained Earnings Account Has a Beginning Balance of $321,975

question 61

Multiple Choice

The Retained Earnings account has a beginning balance of $321,975 and an ending balance of $356,413.Net income is $40,251.Which of the following statements is correct?

• A)$5,813 would be subtracted when determining cash flows from financing activities.
• B)$40,251 would be added when determining cash flows from financing activities.
• C)$34,438 would be added when determining cash flows from financing activities.
• D)$321,975 would be added when determining cash flows from operating activities.

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Definitions:

Bonus Pay

Additional compensation given to employees as a reward for achieving specific goals, performance levels, or for exceptional work beyond their regular pay.

Merit Pay

A system of compensation where employees are awarded pay increases or bonuses based on their performance or achievements.

Profit-Sharing

A compensation strategy where employees receive a share of the company's profits, typically as a supplement to their regular income.

Lump-Sum Payments

A single payment made at a particular time, as opposed to multiple payments made over a period of time.