To Compute Ending Balance of Retained Earnings on the Statement

question 49

Multiple Choice

To compute ending balance of retained earnings on the statement of retained earnings:

• A)net loss is added to the beginning balance of retained earnings and dividends that were declared and paid are subtracted from the beginning balance of retained earnings.
• B)net income and dividends are both added to the beginning balance of retained earnings.
• C)net loss and dividends are both added to the beginning balance of retained earnings.
• D)net income is added to the beginning balance of retained earnings.

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Definitions:

Mark-Up Percentage

A financial ratio indicating the percentage by which a product's selling price exceeds its cost, used to determine selling prices.

Time And Material Pricing

A pricing method where a service provider charges based on the labor time involved and the cost of materials used.

Labour Used

Refers to the total amount of work done or number of hours worked by employees in a specific period.

Materials Used

The raw inputs consumed in the production of goods.