On January 1,20B,Grover Inc

question 86

Multiple Choice

On January 1,20B,Grover Inc.,started the year with a $22,000 credit balance in its retained earnings account.During 20B,the company earned profit of $40,000 and declared and paid dividends of $10,000.Also,the company received cash of $15,000 as an additional investment by its owners.Therefore,the balance in retained earnings on December 31,20B,would be which of the following?

• A)$42,000.
• B)$52,000.
• C)$57,000.
• D)$67,000.

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Definitions:

Consent Decree

A legal agreement that resolves a dispute between two parties without admission of guilt (but with the court still having jurisdiction).

Cease and Desist Order

A legal order issued by a government authority or court directing an individual or entity to stop an alleged illegal activity.

Misleading Advertisement

Marketing materials that deceive or mislead consumers about the nature or value of a product.

Federal Consumer Credit Protection Act

A United States law enacted in 1968 aimed at protecting consumers in financial transactions by requiring clear disclosure of terms and costs of credit and establishing consumer rights regarding credit billing and electronic fund transfers.