To Compute the Ending Balance of Retained Earnings

question 13

Multiple Choice

To compute the ending balance of retained earnings:

• A) the beginning balance in retained earnings will be zero for a new business.
• B) net income for the period is subtracted from the beginning balance.
• C) dividends are added to the beginning balance.
• D) common stock sold during the period is added to the beginning balance.

---

Definitions:

Permanent Damage

Long-lasting harm that cannot be fully repaired, affecting physical structures or biological systems.

Painful Knee Surgery

A surgical procedure on the knee that is associated with significant discomfort or distress.

Vacillation

The inability to decide between different opinions or actions; indecision.

Incongruence

The difference between the perceived self and the ideal self, which can lead to feelings of discomfort and anxiety.