Quiz Space

Financial Forensics · Quiz 1 · 26 Oct 2025 · September 2025 term

Question 12: Which of the following would immediately cause a change …

Question 12

+1 markOne correct option

Which of the following would immediately cause a change in a corporation's retained earnings?

  1. A

    Net income or net loss and declaration of dividends.

  2. B

    Declaration of dividends and issuance of common stock to new stockholders.

  3. C

    Net income and issuance of stock to new stockholders.

  4. D

    Declaration of dividends and purchase of new machinery.

Show answer

Correct answer

  • A

    Net income or net loss and declaration of dividends.

See the whole paperTake it as a mock test

Question 12 of 25 in the IIT Madras BS Financial Forensics (Financial Forensics) Quiz 1 paper sat on 26 Oct 2025, in the September 2025 term (IIT M DEGREE AN EXAM QDB2 26 Oct 2025). It carries 1 mark.

More questions from this paper

  1. Q1The Slugger and K Corporation produces custom-made dog toys. During the current fiscal year, Slugger and K had revenues…
  2. Q2Beacon, Incorporated reported the following amounts at the end of the first year of operations: | Common stock | \ 316,…
  3. Q3Which of the following best describes the balance sheet?
  4. Q4Which of the following would not be found on the statement of cash flows?
  5. Q5Duck Corporation's retained earnings increased \41,200 during the current year. What was Duck's current year net income…
  6. Q6Which of the following equations best describes the income statement?
  7. Q7Kelly Tiles Incorporated has provided the following data for its 2024 operations (ignore income taxes):\ 2024 revenues …
  8. Q8Total assets are \37,500, total liabilities are \20,000 and common stock is \10,000; therefore, retained earnings are \…
  9. Q9For the current year, net income of Carol Company is \20,000 and dividends declared are \6,000; therefore, retained ear…
  10. Q10The amount of cash paid by a business for dividends would be reported as an operating activity cash flow on the stateme…
  11. Q11When would a company report a net loss on the income statement?
  12. Q13Which of the following would most likely increase retained earnings?
  13. Q14Which of the following transactions increases both cash and net income?
  14. Q15A calendar year reporting company preparing its annual financial statements should use the phrase "At December 31, 2024…
  15. Q16Which of the following properly describes the impact on the financial statements when a company borrows \$20,000 from a…
  16. Q17Which of the following statements is correct regarding activities and how they impact financial statements?
  17. Q18Husky Company has provided the following information for its most recent year of operation: Cash collected from custome…
  18. Q19Which of the following statements regarding income is correct?
  19. Q20Which of the following transactions affects both the income statement and the statement of cash flows?
  20. Q21During the current year, Rock Company's cash balance increased from \79,000 to \91,300. Rock's net cash flow from opera…
  21. Q22What is the Asset of the company as 31^(st), December 2024 (in \$)?
  22. Q23What is the Liability of the company as 31^(st), December 2024 (in \$)?
  23. Q24What is the Retained earnings of the company as 31^(st), December 2024 (in \$)?
  24. Q25Net income of the company for the given duration is . (in \$)