J & D Company Had Beginning Retained Earnings of $65,000

question 169

Multiple Choice

J & D Company had beginning retained earnings of $65,000.During the year the company had net income of $150,000,and declared and paid dividends of $9,500.The ending balance in retained earnings is ________.

• A)$215,000
• B)$55,500
• C)$205,500
• D)$224,500

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity.

Long-term Liabilities

Financial obligations of a business that are due more than one year in the future, such as bonds payable, long-term loans, and lease obligations.

Accounts Payable

Obligations owed by a company to its creditors or suppliers for goods and services received but not yet paid for.

Current Ratio

A financial metric that measures a company's ability to pay off its short-term liabilities with its short-term assets, indicating liquidity.