At the End of Year 2,retained Earnings for the Baker

question 27

Multiple Choice

At the end of Year 2,retained earnings for the Baker Company was $3,500.Revenue earned by the company in Year 2 was $1,500,expenses paid during the period were $800,and dividends paid during the period were $500.Based on this information alone,what was the amount of retained earnings at the beginning of Year 2?

• A)$3,300
• B)$3,700
• C)$2,800
• D)$3,800

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Definitions:

Increase Or Decrease

A phrase referring to the action of becoming larger or smaller in size, amount, intensity, or degree.

Natural Selection

The process by which organisms that are better adapted to their environment tend to survive and produce more offspring.

Directly

in a straightforward or immediate manner.

Populations

Groups of individuals belonging to the same species that live in the same geographical area and have the capability of interbreeding.