Financial Accounting Fundamentals | Online Course Support

In year 1, Company A has the following info in its financial statements: Retained Earnings (ending balance) of $95,000; Revenue of $100,000, Expenses (including tax expense) of $30,000, and dividends declared $7,000. What amount will be shown as Net Income in Income Statement?


Correct answer. Net Income = Revenue – all Expenses. Beginning balance in Retained Earnings + Net Income – Dividends Declared = Ending balance in Retained Earnings.

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