Statement of Retained Earnings Night Scapes,Corp

question 68

Multiple Choice

Statement of Retained Earnings Night Scapes,Corp.began the year 2013 with $10 million in retained earnings.The firm suffered a net loss of $2 million in 2013 and yet paid $2 million to its preferred stockholders and $1 million to its common stockholders.What is the year-end 2013 balance in retained earnings for Night Scapes?

• A)$5 million
• B)$8 million
• C)$9 million
• D)$15 million

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Definitions:

Just-World Phenomenon

The belief that the world is fundamentally fair, leading people to rationalize injustice or misfortune as deserved by the victims.

Social Trap

Situations in which individuals or groups make decisions that seem beneficial in the short term but lead to negative outcomes in the long term for themselves and/or others.

Superordinate Goals

Shared goals that necessitate cooperative effort and can reduce conflict between groups by aligning their interests.

Reciprocity Norm

A social norm that expects individuals to help those who have helped them, fostering cooperative and mutually beneficial interactions.