Transaction Analysis and the Accounting Equation Have Been Used to Record

question 25

Multiple Choice

Transaction analysis and the accounting equation have been used to record several transactions for a company.The transactions are now recorded on a multi-column spreadsheet.When preparing a statement of retained earnings with this spreadsheet,which column would be used?

• A)Cash
• B)Accounts Receivable
• C)Retained Earnings
• D)Revenue

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Definitions:

Trading Investments

Trading Investments refer to securities bought and held primarily for selling them in the short term to profit from price fluctuations.

Other Revenue

Revenue from sources other than the primary operating activity of a business.

Subsidiary Company

The corporation that is controlled by a parent company.

Controlling Company

A business entity that holds a significant amount of voting stock in another company, giving it control over its operations and policies.