Aikman Company Has Paid Dividends of $2,410,$0,$1,570 and $1,060 Over

question 51

Multiple Choice

Aikman Company has paid dividends of $2,410,$0,$1,570 and $1,060 over the first four years of the company's existence.If Retained Earnings after year four has an ending balance of $9,700,what is the average annual amount of net income (loss) over the past four years for Aikman?

• A)$3,685.
• B)$14,740.
• C)$840.
• D)$1,260.

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Definitions:

General Journal

A book or document where all financial transactions of a business are initially recorded, prior to being transferred to specific accounts in the general ledger.

Internal Transactions

Financial transactions that occur within an entity, affecting its internal accounts without involving external parties.

Partial Payment

A payment made that is not the full amount owed at the time, typically agreed upon in advance between debtor and creditor.

Cash Receipts Journal

A specialized accounting journal that tracks all cash inflows or money received by a business.