Refer to Desjardin Tools

question 148

Multiple Choice

Refer to Desjardin Tools. What is the budgeted operating income?

• A) $92,500
• B) $320,000
• C) $322,500
• D) $457,500

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Definitions:

Retained Earnings

What remains of the company's net earnings after dividend payments to shareholders have been made.

Dividends Payable

A liability on the company's balance sheet that indicates the amount of dividends declared by the board of directors but not yet paid to shareholders.

Additional Paid-in Capital

The amount of money investors pay above the par value of shares, reflecting the excess amount invested by shareholders in the company.

Common Stock

A type of equity security that represents ownership in a corporation, including voting rights and a share of profits through dividends.