Use the Information Given Below to Answer the Following Questions

question 1

Multiple Choice

Use the information given below to answer the following questions:
Retained profits of Livermore Pty Ltd at 1 July 2011 were $5500. The accounting records for year ended 30 June 2012 showed the following information:
$$\begin{array} { l r } &\$\\\text { Revenues earned } & 35500 \\\text { Cash collected from customers } & 5700 \\\text { Expenses incurred } & 32250 \\\text { Expenses paid in cash } & 29620 \\\text { Dividends declared and paid } & 1500\end{array}$$
-A company declares and pays an interim dividend.This transaction will:

• A) decrease total assets and total shareholders' equity but have no effect on profit
• B) decrease total assets,total shareholders' equity and profit
• C) decrease total assets but have no effect on profit or shareholders' equity
• D) none of the above.

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Definitions:

Economy

The organized system of human activity involved in the production, exchanging, and consumption of goods and services.

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The lowest legal amount that can be paid to workers by employers, typically set by government legislation.

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Food that is prepared and served quickly, often with an emphasis on convenience and typically from a business specializing in such meals.

Division of Labour

The division of labour refers to the allocation of different parts of a manufacturing process or task to different individuals in order to improve efficiency.