Dimension Inc

question 177

Multiple Choice

Dimension Inc.had net income for 2017 of $24,000.It declared and paid a $13,000 cash dividend in 2017.If the company's retained earnings for the end of the year was $39,600,what was the company's retained earnings balance at the beginning of 2017?

• A)$28,600
• B)$50,600
• C)$76,600
• D)$2,600

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Definitions:

Compounded Annually

Refers to the process where interest earned on an investment is added to the principal, and the new total becomes the basis for computing interest in the next period.

Quadruple

To increase or to be increased fourfold.

Annual Growth Rate

The year-over-year increase in value of an investment, expressed as a percentage.

Compounded Annually

An interest calculation method where the interest earned each year is added to the principal, and the following year's interest is based on this new principal amount.