On its 2019 balance sheet, Barngrover Books showed $510 million of retained earnings, and exactly that same amount was shown the following year in 2020.Assuming that no earnings restatements were issued, which of the following statements is CORRECT?
A) Dividends could have been paid in 2020, but they would have had to equal the earnings for the year.
B) If the company lost money in 2020, they must have paid dividends.
C) The company must have had zero net income in 2020.
D) The company must have paid out half of its earnings as dividends.
E) The company must have paid no dividends in 2020.
Correct Answer:
Verified
Q5: Which of the following statements is CORRECT?
A)
Q6: Tucker Electronic System's current balance sheet shows
Q7: The balance sheet is a financial statement
Q8: Which of the following items cannot be
Q9: The annual report contains four basic financial
Q11: Below is the common equity section
Q12: Companies generate income from their "regular" operations
Q13: The income statement shows the difference between
Q14: On the balance sheet, total assets must
Q15: Consider the balance sheet of Wilkes
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents