The Trial Balance for Parker Company Is as Follows

question 6

Multiple Choice

The trial balance for Parker Company is as follows: If the trial balance showed a balance of $16,000 in the Wages Expense account and a balance of $86,000 in the Advertising Fees Earned account,what would be the amount of A?

• A)$126,000
• B)$106,000
• C)$136,000
• D)$116,000

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Definitions:

Cash Dividend

A direct payment of profits made by a company to its shareholders, usually in cash.

Retained Earnings

The portion of a company's profit that is held or retained and saved for future use, investment, or to pay debt, rather than being distributed to shareholders as dividends.

After-tax Earnings

The net income a company generates after all taxes have been deducted from total revenue.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity which is used to finance its overall operations and growth.