Please select the correct answer:
1. At the end of the year, retained earnings totaled $1,700. During the year, net income was $250, and dividends of $120 were declared and paid. Retained earnings at the beginning of the year totaled:
2. Which of the following accounting methods accomplishes much of the matching of revenues and expenses?
a. Match accounting.
b. Cash accounting.
c. Accrual accounting.
d. None of the above.
1. These are always a pain....you have to work backwards to get beginning RE:
+ NI $250
- Div $120
= ending $1,700
So it must have gone up $250 - $120 during year, right? So ...
A discussion explaining each choice comes with suggested solution.