Taking into account any dividends paid out of earnings

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Reference no: EM131555390

A corporation has 1 million in assets, 400,000 in liabilities, and 600,000 in owner's equity. Which of the following is true?

A. The investors of the company have injected $600,000 of capital into the company

B. The company has generated at least $600,000 of profit over the life of the company, whether it has paid any dividends or not.

C. The company has generated and retained at least $600,000 of profit over the life of the company after taking into account any dividends paid out of earnings.

D. The equity section of the balance sheet is comprised of amounts of capital contributed by the owners plus any profits earned and retained by the company (retained earnings) after deducting any dividends paid out to shareholders

Reference no: EM131555390

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