The Increases in Account Balances of XYZ During 2014 Are

question 39

Multiple Choice

The increases in account balances of XYZ during 2014 are presented below: Assuming the only debit to retained earnings was for a dividend of $52,000,net income for 2014 was:

• A) $8,000
• B) $68,000
• C) $96,000
• D) $104,000

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Definitions:

Current Liability

A company's debts or obligations that are due within one year or within the normal operating cycle.

Accounts Receivable

The money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Sales

Revenues earned by a company from the sale of goods or services before any expenses are deducted.

Accounts Payable

Short-term liabilities representing amounts owed by a business to suppliers or creditors for goods and services received.