A company has $100,000 of share capital and $60,000 Retained Earningsat the end of 2020, and $100,000 share capital and $100,000 RetainedEarnings at the end of 2021. Therefore, which of the following statement istrue?Select one:a. The company has incurred losses in 2021O b. The profit for 2021 must be $40,000O c. The company has generated profits in 2021O d. The shareholders have invested a further $40,000 in 2021

Retained earnings ending balance is result of retained earnings beginning balance plus Net income…

A company has $100,000 of share capital and $60,000 Retained Earnings at the end of 2020, and $100,000 share capital and $100,000 Retained Earnings at the end of 2021. Therefore, which of the following statement is true? Select one: O a. The company has incurred losses in 2021 O b. The profit for 2021 must be $40,000 O c. The company has generated profits in 2021 O d. The shareholders have invested a further $40,000 in 2021

A company has $100,000 of share capital and $60,000 Retained Earnings at the end of 2020, and $100,000 share capital and $100,000 Retained Earnings at the end of 2021. Therefore, which of the following statement is true? Select one: O a. The company has incurred losses in 2021 O b. The profit for 2021 must be $40,000 O c. The company has generated profits in 2021 O d. The shareholders have invested a further $40,000 in 2021

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

A company has $100,000 of share capital and $60,000 Retained Earnings
at the end of 2020, and $100,000 share capital and $100,000 Retained
Earnings at the end of 2021. Therefore, which of the following statement is
true?
Select one:
a. The company has incurred losses in 2021
O b. The profit for 2021 must be $40,000
O c. The company has generated profits in 2021
O d. The shareholders have invested a further $40,000 in 2021

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