During Year 5,Magellan Corporation Earned Net Income of $32,000 and Paid

question 59

Multiple Choice

During Year 5,Magellan Corporation earned net income of $32,000 and paid cash dividends of $8,500 to its stockholders.Which of the following choices reflects the effect of closing entries on the company's financial statements?

• A)The income statement will report net income of $23,500 after the closing entries have been posted to the ledger accounts.
• B)The balance sheet will report retained earnings of $23,500 after the closing entries have been posted to the ledger accounts.
• C)The balance sheet will report retained earnings of $32,000 after the closing entries have been posted to the ledger accounts.
• D)The amounts reported on the financial statements will not be affected by the closing entries.

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Definitions:

Implicit Personality Theory

The assumption that individuals make unconscious, automatic inferences about the personality traits of others.

Social Psychology

The scientific study of how individuals think, influence, and relate to each other within social contexts.

Social Psychology

The scientific study of how individuals' thoughts, feelings, and behaviors are influenced by the actual or imagined presence of others.

Interpersonal Attraction

The force that draws people together and creates interest and desire in forming relationships.