BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$290, 000
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$270, 000
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$205, 000
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$15, 000
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Detailed explanation-1: -Answer and Explanation: The correct option is (b)-$265, 000.
Detailed explanation-2: -On the balance sheet, a company’s total liabilities are generally split up into three categories: short-term, long-term, and other liabilities. Total liabilities are calculated by summing all short-term and long-term liabilities, along with any off-balance sheet liabilities that corporations may incur.
Detailed explanation-3: -The retained earnings are calculated by adding net income to (or subtracting net losses from) the previous term’s retained earnings and then subtracting any net dividend(s) paid to the shareholders. The figure is calculated at the end of each accounting period (monthly/quarterly/annually).
Detailed explanation-4: -To calculate liabilities, simply list out the amount that your company owes across all of its obligations (both current and future) and add them together. This may require gathering up bills, loan documents, and other important paperwork.
Detailed explanation-5: -Retained Earnings are listed on a balance sheet under the shareholder’s equity section at the end of each accounting period. To calculate Retained Earnings, the beginning Retained Earnings balance is added to the net income or loss and then dividend payouts are subtracted.