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To Compute the Ending Balance of Retained Earnings

Question 39

Multiple Choice

To compute the ending balance of Retained Earnings:


A) the beginning balance in Retained Earnings will be negative for a new business.
B) net loss for the period is subtracted from the beginning balance of Retained Earnings.
C) Dividends are added to the beginning balance of Retained Earnings.
D) common stock sold during the period is added to the beginning balance of Retained Earnings.

Correct Answer:

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