Question

A company has net income of $ 225,000 and declares and pays dividends in the amount of $ 75,000 . What is the net impact on retained earnings? a. Increase of $ 225,000 b. Decrease of $ 75,000 c. Increase of $ 150,000 d. Decrease of ,000

Answer 1

A company has net income of $ 225,000 and declares and pays dividends in the amount of $ 75,000 .

c. An increase of $ 150,000 is the net impact on retained earnings is the correct option.

Income is the consumption and savings opportunity that a business captures within a specific time frame, usually expressed in money. Income is difficult to define conceptually and definitions vary by region.

For most people, income means gross income in the form of wages and salaries, return on investment, pension payments, and other income.

The definition of income is the amount of money received by an individual, group or business during a specified period. An example of income is an annual salary of $70,000.

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