Use the Following Balance Sheet and Income Statement to Answer

question 9

Multiple Choice

Use the following Balance Sheet and Income Statement to answer the question. If Jane Austin Bookstore paid $5,450 in dividends for 2010, what was the balance in Retained Earnings on December 31, 2009?

• A)$42,000
• B)$58,900
• C)$48,000
• D)$45,000

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Definitions:

Cases of First Impression

Legal cases in which a court must decide on a matter that has not been previously adjudicated, setting a precedent for future cases.

Public Policy

The principles, laws, and actions adopted or proposed by a government to address issues of public concern, affecting how society manages its resources and governs its members.

Equitable Maxim

A general legal principle applied in fairness (equity) cases, guiding judges in decision making where strict application of the law might result in an unjust outcome.

Equity

In legal contexts, refers to the body of principles constituting what is fair and right; in finance, refers to the value of an owner's interest in property or a business, after debts are subtracted.