The Amount of Retained Earnings on La Paz's 2012 Balance

question 15

Multiple Choice

The amount of retained earnings on La Paz's 2012 balance sheet was

• A)$3,100.
• B)$2,700.
• C)$300.
• D)$700.

---

Definitions:

Net Income

The total profit of a company after all expenses, including taxes and operating expenses, have been subtracted from total revenue.

Dividends Declared

A formal announcement by a company's board of directors to pay dividends to shareholders, specifying the amount and payment date.

Declaration Date

The date on which a company's board of directors announces the issuance of a dividend to its shareholders.

Cash Dividend

A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.