The Following Is a Summary of the Increases in the Account

question 80

Multiple Choice

The following is a summary of the increases in the account categories of the balance sheet of Riley Company for the most recent fiscal year: The only change to retained earnings during the fiscal year was for $20,000 of dividends.What was the company's net income for the fiscal year?

• A) $25,000
• B) $15,000
• C) $5,000
• D) $20,000

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Definitions:

Outstanding Voting

Shares of a company that are currently owned by investors and have the right to vote on corporate matters.

Outstanding Voting

Refers to the shares of a corporation that have voting rights and are currently held by shareholders, not the company itself.

Initial Value Method

An accounting approach where investments are recorded at their original cost without subsequent adjustment for changes in value.

Intra-entity Gross Profit

The profit recognized on transactions within different parts of the same company.