Hope Company Has the Following Data Available What Is the Retained Earnings Balance on December 31,2011?
A)

question 18

Multiple Choice

Hope Company has the following data available:
$\begin{array} { l } \text {Retained Earnings, January 1, 2011 }&\$12,000 \\ \text {Net income for the year ending December 31,2011 }&\$3,000 \\ \text {Dividends declared in 2011 }&\$2,000 \\ \text {Paid-in Capital, January 1, 2011 }&\$ 50,000\\ \text { Total liabilities, January 1, 2011}&\$ 40,000\\\end{array}$

What is the retained earnings balance on December 31,2011?

• A) $12,000
• B) $13,000
• C) $14,000
• D) $63,000

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Definitions:

Total Expenses

The sum of all costs and expenses associated with operating a business or executing a project.

Profit

The financial gain obtained when the revenue from selling goods or services exceeds the costs associated with production and distribution.

Linked Prosperity

A business philosophy that emphasizes creating economic value in a way that also produces value for society by addressing its challenges.

ISO 9000

A set of international standards on quality management and quality assurance developed to help companies effectively document the quality system elements to be implemented to maintain an efficient quality system.