On its 2019 balance sheet, Barngrover Books showed $510 million of retained earnings, and exactly that same amount was shown the following year in 2020. Assuming that no earnings restatements were issued, which of the following statements is CORRECT? A. Dividends could have been paid in 2020, but they would have had to equal the earnings for the year. B. If the company lost money in 2020, they must have paid dividends. C. The company must have had zero net income in 2020. D. The company must have paid out half of its earnings as dividends. E. The company must have paid no dividends in 2020.
On its 2019 balance sheet, Barngrover Books showed $510 million of retained earnings, and exactly that same amount was shown the following year in 2020. Assuming that no earnings restatements were issued, which of the following statements is CORRECT? A. Dividends could have been paid in 2020, but they would have had to equal the earnings for the year. B. If the company lost money in 2020, they must have paid dividends. C. The company must have had zero net income in 2020. D. The company must have paid out half of its earnings as dividends. E. The company must have paid no dividends in 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
On its 2019 balance sheet, Barngrover Books showed $510 million of retained earnings, and exactly that same amount was shown the following year in 2020. Assuming that no earnings restatements were issued, which of the following statements is CORRECT?
A. Dividends could have been paid in 2020, but they would have had to equal the earnings for the year.
B. If the company lost money in 2020, they must have paid dividends.
C. The company must have had zero net income in 2020.
D. The company must have paid out half of its earnings as dividends.
E. The company must have paid no dividends in 2020.
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education