If a Company Has Stockholders' Equity of $60,000 at the End

question 121

Multiple Choice

If a company has stockholders' equity of $60,000 at the end of the year,which of the following statements must be true?

• A)The company's assets exceed liabilities by $60,000.
• B)The company has issued $60,000 of common stock.
• C)Net income for the year equals $60,000.
• D)Total revenues earned during the year equal $60,000.

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Definitions:

Share Repurchase

A company's buyback of its own shares from the marketplace, reducing the number of outstanding shares and potentially increasing share value.

Dividend Per Share

The amount of dividend that a company pays out to each shareholder for each share they own.

Retention Ratio

The retention ratio is a financial metric indicating the percentage of a company's profits that are reinvested in the business rather than distributed as dividends to shareholders.

EPS

Earnings Per Share (EPS) is a financial ratio that measures the amount of net income earned per share of stock outstanding.