The ending Retained Earnings balance of Boomer Inc. decreased by

51. The equation best describing the balance sheet is:
A. Assets = Liabilities + Stockholders' Equity.
B. Revenues - Expenses = Net Income.
C. Ending Retained Earnings + Dividends = Net Income.
D. Revenues + Expenses = Net Income.

52. DW has an ending Retained Earnings balance of $51,100. If during the year DW paid dividends of $4,300 and had net income of $22,500, then what was the beginning Retained Earnings balance? 

A. $24,300.
B. $300.
C. $32,900.
D. $69,300.

Beginning Retained Earnings + Net Income ($22,500) - Dividends ($4,300) = Ending Retained Earnings ($51,100).

53. The ending Retained Earnings balance of Boomer Inc. decreased by $1.0 million from the beginning of the year. The company declared a dividend of $5.4 million during the year. What was the net income earned during the year? 

A. $7.5 million.
B. $6.4 million.
C. $4.4 million.
D. $1.0 million.

Beginning Retained Earnings ($0) + Net Income - Dividends ($5.4) = Ending Retained Earnings (-$1.0).

 

54. Which financial statement is typically prepared first? 

A. Balance sheet.
B. Income statement.
C. Statement of stockholders' equity.
D. Statement of cash flows.

 

55. Expenses are shown in which of the following statements? 

A. Income statement.
B. Statement of cash flows.
C. Balance sheet.
D. Statement of stockholders' equity.

 

56. Given the information below about Thomas Corporation, what was the amount of dividends the company paid in the current period?

A. $13,000.
B. $110,000.
C. $28,000.
D. $18,000.

Beginning Retained Earnings ($54,000) + Net Income ($84,000) - Dividends = Ending Retained Earnings ($110,000).

57. Retained earnings at the end of the year is calculated using:
A. Beginning retained earnings, net income, and dividends.
B. Common stock and dividends.
C. Stockholders' equity, net income, and dividends.
D. Net income and dividends.

58. The financial statement that represents the accounting equation is the: 

A. Income statement.
B. Statement of cash flows.
C. Balance sheet.
D. Statement of stockholders' equity.

59. Which of the following is not a major section in the statement of cash flows? 

A. Cash flows from operating activities.
B. Cash flows from financing activities.
C. Cash flows from customers.
D. Cash flows from investing activities.

60. Given the information below about David Corporation, what was the amount of dividends the company paid in the current period?

  
A. $140,000.
B. $0.
C. $30,000.
D. $20,000.

Beginning Retained Earnings ($35,000) + Net Income ($85,000) - Dividends = Ending Retained Earnings ($90,000).