Moore Industries Moore Industries Began Operations on January 2, 2017, with an with an Investment

question 12

Multiple Choice

Moore Industries
Moore Industries began operations on January 2, 2017, with an investment of $50,000 by each of its two stockholders. Net income for its first year of business was $240,000. Moore Industries paid a total of $100,000 in dividends to its stockholders during the year.



-Read the information about Moore Industries.The company's dividends for the year

• A)reduce the amount of capital stock reported by the company.
• B)are part of Moore Industries' operating costs.
• C)are reported on the statement of retained earnings.
• D)are an expense of Moore Industries.

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Definitions:

Interest Earned

The amount of money gained as profit from an investment over a certain period of time.

Account

A record summarizing all the transactions pertaining to a single item in the financial statements.

Days

The basic unit of time, equal to 24 hours, used to measure duration from one midnight to the next.

Interest Earned

The amount of money made on an investment over a certain period of time due to interest.