Use the information given below to answer the following questions:
During 2012, Avion Ltd incurred expenses of $250 and earned a net profit of $50. Retained profits at 1 January 2012 stood at $70 and dividends declared and paid totalled $30. At 31 December 2012, liabilities were $200 and share capital $110. There were no transfers to reserves during 2012.
-What was the balance of Avion Ltd's retained profits at 31 December 2012?
A) $90
B) $150
C) $30
D) $50.

Question

Quizplus · Accepted Answer

The retained profits at the end of the year are calculated as: Retained profits at the beginning of the year ($70) + Net profit ($50) - Dividends paid ($30) = $90.

Use the Information Given Below to Answer the Following Questions