Dimension Inc

question 69

Multiple Choice

Dimension Inc.had net income for 2014 of $24,000.It declared and paid a $13,000 cash dividend in 2014.If the company's retained earnings for the end of the year was $39,600,what was the company's retained earnings balance at the beginning of 2014?

• A)$28,600
• B)$50,600
• C)$76,600
• D)$2,600

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Definitions:

Supply Contract

A legal agreement between a supplier and a buyer that outlines the terms and conditions regarding the sale and delivery of goods or services.

Repudiation

The refusal to fulfill or discharge an agreement, obligation, or contract.

Exemption Clause

A contractual term that limits one party's liability in certain situations or for certain types of damages.

Cash Crop Vegetables

Vegetables grown primarily for sale to the market, rather than for consumption by the grower.