Which of the following is not true about the financial statements of Dudley Do-Right Repair Shop?
A)The balance sheet at December 31,2013 will show Total Liabilities of $10,500.
B)The balance sheet at December 31,2013 will show Retained earnings of $68,700.
C)The Income Statement for the year will not include the dividends of $48,000.
D)The Income Statement for the year will show Total Revenue of $175,000.

Question

Quizplus · Accepted Answer

Retained earnings are calculated by adding net income to the previous retained earnings and subtracting dividends. If dividends are $48,000, it would affect the retained earnings calculation.

Which of the Following Is Not True About the Financial