Which of the Following Must Be Added to Beginning Retained

question 40

Multiple Choice

Which of the following must be added to beginning Retained Earnings to compute ending Retained Earnings?

• A)Net income
• B)Expenses
• C)Dividends
• D)All of the above

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Definitions:

Conversion Costs

The sum of direct labor and manufacturing overhead costs, representing the costs necessary to convert raw materials into finished goods.

Process Costing

An accounting methodology used for homogeneous products, where costs are averaged over the units produced.

Weighted-Average Method

A cost flow assumption used in inventory valuation and cost accounting, where costs are averaged over the units available for sale.

Equivalent Unit

A concept used in cost accounting to express the amount of work done on in-process products in terms of fully completed units.