Revenues were $150,000,expenses were $140,000,and cash dividends declared and paid were $5,000.What was the net income and the change in retained earnings for the period?

Question

Quizplus · Accepted Answer

Net income is calculated as revenues minus expenses: 
$150,000 - $140,000 = $10,000

The change in retained earnings is calculated as net income minus dividends: 
$10,000 - $5,000 = $5,000

Therefore, the correct answer is C.

Revenues Were $150,000,expenses Were $140,000,and Cash Dividends Declared and Paid