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1. Retained Earnings represent: A) The profits of the company. B) The investment

ID: 340967 • Letter: 1

Question

1. Retained Earnings represent: A) The profits of the company. B) The investments of the owners. C) The profits of the company plus the investments of the owners. D) The total earmings of the company, less the dividends distributed to the owners and less any losses 2. The journal entry when a dividend is declared for $150,000 would be A) Retained Eamings Dividends Payable Cash Dindends Payable $150,000 $150.0 $150,000 $150,000 $150,000 Dividends 150,000 (C) Dividends Eamings Divndends etaned $150,000 A) A Above B) B Above. C) C Above. D) D Above 3. When a corporation declares a dividend: A) Assets decrease, liabilities increase. B) Retained earnings increase, liabilities increase. C) Liabilities increase, retained earnings decrease. D) Retained earnings decrease, assets increase. 4. Book value per share of common stock is derived by which of the following A) Stockholders equity divided by the number of shares authorized B) Stockholders equity divided by the number of shares outstanding C) Net income divided by the number of shares outstanding D) Net income divided by the number of shares authorized 5. The net assets of a corporation are equal to: A) Total assets- total liabilities B) Total assets - retained earnings C) Total assets +total liabilities D) Total assets+retained earnings

Explanation / Answer

Answer 1

D) The total earning of the company , less the dividends distributed to the owners & less any losses.

Answer 2

A) A above

Answer 3

C) Liabilities increases & retained earnings decreases

Answer 4

B)   Stockholders equity divided by number of shares outstanding

Answer 5

A) Total assets - total liabilities