Which of the Following Statements Regarding Net Income Transferred to Retained

question 58

Multiple Choice

Which of the following statements regarding net income transferred to retained earnings is correct?

• A) Net income = net income transferred to retained earnings - dividends
• B) Net income transferred to retain earnings = net income + dividends
• C) Net income = net income transferred to retain earnings + dividends
• D) Net income transferred to retain earnings - net income = dividends

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Definitions:

Recorded Cost

The cost of an asset as it appears in a company's books or financial statements, reflecting the original cost of acquisition.

Physical Count

An actual count of inventory or assets, conducted at certain intervals, to ensure the accuracy of records and accounts.

Allocating Cost

The process of assigning costs to various cost objects such as products, services, or departments for accounting purposes.

Inventory Accounting

A method of accounting that deals with valuing and accounting for changes in inventoried assets, impacting how businesses report their cost of goods sold and value of inventory in financial statements.