Assume that retained earnings had a beginning balance of $75,000. Match the following amounts to the appropriate term (a-h).
-Retained Earnings = Beginning Retained Earnings + Net Income + Ending Retained Earnings - Cash Dividends = $75,000 + $200,000 - $40,000 = $235,000
A)Treasury stock
B)Retained earnings
C)Preferred stock
D)Excess of issue price over par (preferred)
E)Common stock
F)Total paid-in capital
G)Excess of issue price over par (common)
H)Total stockholders' equity

Question

Quizplus · Accepted Answer

The correct term for the given equation is Retained Earnings, as it describes the calculation of ending retained earnings based on beginning balance, net income, and dividends.

Assume That Retained Earnings Had a Beginning Balance of $75,000