Mia Hero,Inc

question 172

Multiple Choice

Mia Hero,Inc.had a retained earnings balance of $7,000 on December 31,2011.For the year 2012,sales revenues are $15,000 and expenses are $13,000.If no dividend is declared or paid in 2012,retained earnings at December 31,2012 equals ________.

• A)$9,000
• B)$10,000
• C)$35,000
• D)some other amount

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Definitions:

Partners' Capital Statement

A financial document that shows the changes in the equity of each partner in the business over a period of time.

Capital Account Balances

The financial records that show the contributions, withdrawals, and ownership interest of investors in a company.

Initial Investment

The amount of money used to start a project, purchase an asset, or initiate operations in a new business.

Book Value

The value of an asset according to its balance sheet account balance, taking into consideration the cost of the asset minus depreciation.