Harrison Company Uses the Indirect Method to Prepare Its Cash

question 107

Multiple Choice

Harrison Company uses the indirect method to prepare its cash flow statement.Refer to the following information for the year 2016:
1) Retained earnings, beginning balance, $141,000
2) Retained earnings, ending balance, $122,000
3) Company reported net loss of $15,000 for the year.
What was the amount of dividends declared during the year?

• A) $4000
• B) $34,000
• C) $3000
• D) $19,000

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Definitions:

Food, Conservation, and Energy Act

A law enacted by the United States governing agriculture, forestry, and food policy, also known as the 2008 Farm Bill.

Freedom to Farm Act

Legislation aimed at reducing government restrictions on farming, allowing farmers more freedom in deciding what crops to plant and how to manage their land.

Conservation Reserve Program

A U.S. government program designed to reduce agricultural production by compensating farmers for not planting part of their land to improve environmental quality.

Effectiveness

The degree to which objectives are achieved and the extent to which targeted problems are solved.