Hot Tamale Company Had $120,000 of Revenues and $125,000 of Expenses

question 130

Multiple Choice

Hot Tamale Company had $120,000 of revenues and $125,000 of expenses. No dividends were paid. These factors will result in which of the following?

• A) Retained earnings will go down.
• B) Retained earnings will go up.
• C) Paid-in capital will go down.
• D) Paid-in capital will go up.

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Definitions:

Forward Contracts

Financial derivatives involving an agreement to buy or sell an asset at a predetermined future date and price.

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The value of one currency for the purpose of conversion to another, determining how much one currency is worth in terms of another.