Magellan Corporation Earned Net Income of $32,000 and Paid Cash

question 100

Short Answer

Magellan Corporation earned net income of $32,000 and paid cash dividends of $8,500 to its stockholders.Which of the following choices reflects the effect of closing entries on Magellan's financial statements?

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Definitions:

Demand Deposits

Refers to funds held in bank accounts from which money can be withdrawn at any time without any advance notice to the institution.

Principles Of Internal Control

Principles Of Internal Control are the guiding rules designed to safeguard assets, ensure accurate financial reporting, promote operational efficiency, and encourage adherence to policies.

GAAP

Generally Accepted Accounting Principles are a compilation of universally accepted standards and rules for accounting and financial reporting.

IFRS

International Financial Reporting Standards, a set of global accounting guidelines outlining how transactions and other accounting events should be reported in financial statements.