Retained Earnings at the beginning and ending of the accounting period was $300 and $700, respectively. If revenues were $1,100 and dividends paid to stockholders were $200, expenses for the period must have been
A)$500.
B)$400.
C)$900.
D)$700.

Question

Quizplus · Accepted Answer

Beginning retained earnings + Revenues - Expenses - Dividends = Ending retained earnings
$300 + $1,100 - Expenses - $200 = $700
Expenses = $500

Retained Earnings at the Beginning and Ending of the Accounting