A corporation has experienced losses greater than profits in the past three years since incorporation. Which of the following statements is true? a. Retained Earnings has a credit balance at the end of the third year. b. Retained Earnings has a debit balance and is reported as an asset on the statement of financial position. c. Retained Earnings has a debit balance and it appears as a reduction in the shareholders' equity on the statement of financial position. d. Retained Earnings has a credit balance at the end of the third year and the corporation may choose how to report a deficit.

The right side of the balance sheet shows the firm’s liabilities and stockholders’ equity. Which of the following best describes shareholders’ equity? Equity is the sum of what the initial stockholders paid when they bought company shares and the earnings that the company has retained over the years.   Equity is the difference between the paid-in capital and retained earnings.     NOW Inc. released its annual results and financial statements. Grace is reading the summary in the business pages of today’s paper. In its annual report this year, NOW Inc. reported a net income of $136 million. Last year, the company reported a retained earnings balance of $459 million, whereas this year it increased to $540 million. How much was paid out in dividends this year? $4 million   $217 million   $55 million   $280 million

How do you find the net income or net loss?  I know that net income is found by revenues - expenses.

The right side of the balance sheet shows the firm’s liabilities and stockholders’ equity. Which of the following best describes shareholders’ equity? Equity is the difference between the company’s assets and retained earnings. Equity is the sum of shareholders’ capital provided by shareholders and retained earnings. NOW Inc. released its annual results and financial statements. Grace is reading the summary in the business pages of today’s paper. In its annual report this year, NOW Inc. reported a net income of $192 million. Last year, the company reported a retained earnings balance of $442 million, whereas this year it increased to $520 million. How much was paid out in dividends this year? $3 million $114 million $270 million $575 million