A Company Had a Beginning Balance in Retained Earnings of $43,000.It

question 21

Multiple Choice

A company had a beginning balance in retained earnings of $43,000.It had net income of $6,000 and paid out cash dividends of $5,625 in the current period.The ending balance in retained earnings account is equal to:

• A)$108,625
• B)$(12,625)
• C)$11,375
• D)$43,375
• E)$(11,375)

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Definitions:

Excess Supply

A market condition where the quantity of a product offered for sale by producers exceeds the quantity demanded by consumers at a given price.

Price Floor

A government-imposed minimum price charged for a commodity, below which it cannot legally be sold, typically intended to protect producers.

Retailers

Businesses that sell goods directly to consumers.

Price Floor

A government-imposed minimum price set above the equilibrium price, intended to ensure fair conditions for producers.