At the End of the Third Year of Operation, Alger

question 69

Multiple Choice

At the end of the third year of operation, Alger Corporation has total assets equal to $100,000, liabilities totaling $90,000, and contributed capital of $30,000.What is the balance in retained earnings?

• A)$40,000 (Dr)
• B)$40,000 (Cr)
• C)$20,000 (Dr)
• D)$10,000 (Cr)
• E)$20,000 (Cr)

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Definitions:

Stockholder's Equity

Stockholder's equity represents the owners' claims on the assets of a corporation, calculated as the difference between total assets and total liabilities.

Disposal

The process of getting rid of an asset or waste, which can involve selling, recycling, or discarding.

Discontinued Operations

Parts of a company's core business or segments that have been sold, disposed of, or ceased to operate.

Continuing Operations

Continuing operations refer to the sections of a company's business that it expects to continue for the foreseeable future, defining its ongoing, core activities.