1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
strojnjashka [21]
3 years ago
14

On its 2008 balance sheet, Sherman Books showed a balance of retained earnings equal to $510 million. On its 2009 balance sheet,

the balance of retained earnings was also equal to $510 million. Which of the following statements is most correct?
a. The company must have had net income equal to zero in 2009.
b. The company did not pay a dividend in 2009.
c. If the company's net income in 2009 was $200 million, dividends paid must have also equaled $200 million.
d. If the company lost money in 2009, they must have paid a dividend.
e. None of the statements above is correct.
Business
1 answer:
Marta_Voda [28]3 years ago
5 0

Answer:

a. The company must have had net income equal to zero in 2009.

Explanation:

If on its 2008 balance sheet, Sherman Books showed a balance of retained earnings equal to $510 million, and on its 2009 balance sheet, the balance of retained earnings was also equal to $510 million; then what is true is that  the company must have had net income equal to zero in 2009.

Retained earnings is the profit amount or net income left over and taken back into the business after it has paid out dividends to its shareholders.

However it is unlikely that the company will pay out the entire amount it earns in a particular year but a percentage of earnings.

In the case of Sherman, it is unlikely that the company made a profit of $200 million and paid out every bit as dividends to shareholders but what is most likely is that there was no profit made for retention in 2009

You might be interested in
I will give you fifty five point if you make Brainliest me but if you don't and it's just a scam I'm going to report you and the
gulaghasi [49]

Answer:

okay lol

Explanation:

answer my newest question and i'll give it to you <3

5 0
3 years ago
Packaging Products, Inc., sends its standard purchase-order form to Quality Box Company to evidence a sale of packaging material
natima [27]

Answer:

Option D. Any of the above.

Explanation:

The reason is that the contract is not formed until the both parties don't agree on the terms and conditions of the contract which includes:

  • New terms and conditions because as we know the business environment is consistently changing like inflation changes, etc (Option A).
  • The acceptance is always required for the contract formation (Option B).
  • Additional clauses of the contract are new clauses and acceptance is required for these to form a contract (Option C).

So all of the options can alter the contract existence. So the right answer is option D.

4 0
3 years ago
Read 2 more answers
There are some liabilities, such as income tax payable, for which the amounts must be estimated. Failure to estimate these amoun
LenaWriter [7]

Answer: D. Matching principle

Explanation:

The matching principle simply states that organizations or businesses should recognize both the revenues that the company makes and their related expenses that are incurred by the company in same accounting period.

The main idea behind the matching concept is so that earnings that are made by a business will not be misstated.

3 0
3 years ago
The government uses the revenue from taxes to pay for goods and services for the community. True False
nexus9112 [7]
The answer is true because without our tax maney we wouldnt have goods and services.
6 0
3 years ago
Read 2 more answers
What does the reset() command do?
Rom4ik [11]
<span>This command resets the Winsock catalog to the default configuration. This can be useful if a malformed LSP is installed that results in loss of network connectivity. While use of this command can restore network connectivity, it should be used with care because any previously-installed LSPs will need to be re-installed. </span>
3 0
3 years ago
Other questions:
  • Four Seasons Hotels sell private residences in several of their properties and sends direct mail to prospective residents asking
    5·1 answer
  • On January 2, 2018, Ava Co. issued at face value $53,300 of 9% bonds convertible in total into 9,649 shares of Ava's common stoc
    10·2 answers
  • Which of the following statements is true of direct marketing? Direct marketers can target only large groups of customers whose
    7·1 answer
  • If taco bell decides to produce more tacos and fewer burritos, taco bell is answering the ________ part of one of the two big ec
    13·1 answer
  • Mediflow, a medium-sized medical technology company, has been successful in its research and development, but needs improvement
    5·1 answer
  • The return of merchandise was recorded as a debit to accounts payable and a credit to purchases. This error would cause
    7·1 answer
  • 3. Hidden details can be shown in drawing<br>using <br>line.​
    5·1 answer
  • Are the following statements true or false? Explain in each case.
    5·1 answer
  • Terry Dactal has compiled the financial information displayed below. Which of the following is Terry’s net worth? Salaries $72,4
    13·1 answer
  • Describe how an unrelated tenant in common or joint tenant should protect him- or herself from potential liability (for negligen
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!