Based on the Following Information,what Would Be the Beginning Balance

question 122

Multiple Choice

Based on the following information,what would be the beginning balance in the Retained Earnings Account,assuming all accounts have a normal balance?
$\begin{array}{lrlr}\text { Cash } & \$ 6,754 & \text { Dividends } & \$ 2,000 \\\text { Accounts receivable } & 13,733 & \text { Consulting fees earned } & 13,71 \\\text { Office supplies } & 2,625 & \text { Rent expense } & 3,67 \\\text { Land } & 37,153 & \text { Salaries expense } & 6,64 \\\text { Office equipment } & 14,535 & \text { Telephone expense } & 560 \\\text { Accounts payable } & 6,463 & \text { Miscellaneous expense } & 280 \\\text { Common stock } & 54,490 & \text { Retained Earnings } & ?\end{array}$

• A)$0
• B)$13,718
• C)$13,155
• D)$13,284
• E)$2,563

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Definitions:

Demand SHIFT

A change in the market demand curve, where at every price level, the quantity demanded of a good increases or decreases due to factors other than its price such as consumer preferences, income, or the price of other goods.

Complement

A good whose demand increases when the price of another good decreases. Examples include a parking lot and shopping mall or a hamburger and a hamburger bun.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers at various price levels.

Normal Good

A type of good for which demand increases as the income of the consumer increases, reflecting a direct relationship between income and demand.