Assume the Beginning Balance in the Retained Earnings Account Is

question 84

Multiple Choice

Assume the beginning balance in the Retained Earnings account is zero. If a debit balance of $5,000 exists in Retained Earnings after closing out revenues and expenses at the end of the current period, it indicates:

• A) that the company had net income of $5,000.
• B) an increase in cash of $5,000.
• C) the company had a net loss of $5,000.
• D) a decrease in cash of $5,000.

---

Definitions:

Missouri Statehood

The admission of Missouri as the 24th state of the United States on August 10, 1821, following the Missouri Compromise.

Maine

A U.S. state located in the northeastern part of the country, known for its scenic coastlines and maritime history.

Northwest Ordinance

A significant law passed by the United States Congress in 1787 that provided a method for admitting new states to the Union from the Northwest Territory.

Northwest Territory

A historical region encompassing the area near the Great Lakes and the upper Mississippi River that was organized under United States governance post the American Revolutionary War.