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.

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Definitions:

Determinism

The philosophical doctrine suggesting that all events, including moral choices, are determined by previously existing causes.

Freedom

The authority or freedom to behave, express oneself, or make decisions without being stopped or limited.

Argumentative Dialogue

A conversation or discussion that involves presenting and defending different viewpoints through reasoning.

Assumptions

Beliefs or statements taken for granted without proof, often serving as the foundation for further reasoning or arguments.