A Company Had a Beginning Balance in Retained Earnings of $400,000

question 70

Multiple Choice

A company had a beginning balance in retained earnings of $400,000. It had net income of $50,000 and paid out cash dividends of $55,000 in the current period. The ending balance in retained earnings equals:

• A) $505,000.
• B) $350,000.
• C) $395,000.
• D) $455,000.
• E) $405,000.

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Definitions:

Clients' Interests

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Suitability

Suitability refers to the requirement that financial advisors and investment recommendations must align with the investing objectives, risk tolerance, and financial situation of the client.

Optimal Return

The highest possible return on an investment, considering the risk level and constraints, to achieve the best financial outcome.

Target-date

Refers typically to a type of mutual fund or retirement fund that automatically shifts towards more conservative investments as the target date (often retirement) approaches.