The balance of retained profits at the beginning of a period was $1000 and at the end of the period it was $850.A dividend of $50 was declared and paid.What was the net profit/loss for the period?
A) Net loss $100
B) Net profit $100
C) Net loss $200
D) Net profit $200

Question

Quizplus · Accepted Answer

The retained profits decreased by $150 ($1000 - $850). Since a $50 dividend was paid, the net loss for the period is $100 ($150 decrease - $50 dividend).

The Balance of Retained Profits at the Beginning of a Period