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Beta Company Was Founded in 2012

Question 94

Multiple Choice

Beta Company was founded in 2012. Its yearly earnings and dividend payments are shown here:
2012: Net income $4,000, paid zero dividends
2013: Net income $20,000, paid $10,000 dividends
2014: Net income of $8,000, paid $5,000 dividends
2015: Net loss of $22,000, paid zero dividends
At the end of 2015, which of the following statements would be accurate?


A) Beta has a cumulative operating loss.
B) Beta has a retained earnings deficit.
C) Beta has retained earnings surplus.
D) Beta has negative contributed capital.

Correct Answer:

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