Beta Company Was Founded in 2012

question 49

Multiple Choice

Beta Company was founded in 2012. Its yearly earnings and dividend payments are shown here:
2012: Net income $4,000, paid zero dividends
2013: Net income $20,000, paid $10,000 dividends
2014: Net income of $8,000, paid $5,000 dividends
2015: Net loss of $22,000, paid zero dividends
At the end of 2015, which of the following statements would be accurate?

• A) Beta has a cumulative operating loss.
• B) Beta has a retained earnings deficit.
• C) Beta has retained earnings surplus.
• D) Beta has negative contributed capital.

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Definitions:

Suffix

A linguistic element added to the end of a word to form a derivative or change its grammatical function.

Consonant

A speech sound produced by partially or completely obstructing the flow of air through the vocal tract, characterized by less resonance and more restriction than vowels.

Impulses

Electrical or chemical signals transmitted through the nerves of the body.

Bx

Biopsy, a medical test involving the extraction of sample cells or tissues for examination to determine the presence of diseases.