1. Restrictions of retained earnings may be classified as a legal b. contractual c. discretionary d. All of these are correct d 2. A corporation has a $500,000 beginning balance in Retained earnings. Its not income for the year was $200,000. Soles revenue amounted to $1,000,000, and dividends declared and paid by year end amounted to $100,000. What was the ending balance in Retained Earnings? a. $600,000 b. $1,400,000 c. $700,000 d. $1,200,000 3. On the balance sheet, the balance of Treasury Stock is a. added to stockholders' equity b. deducted from stockholders' equity c. disclosed only in the notes d. not reported EPS is calculated as net Income divided by the number of shares outstanding revenue divided by number of shares issued and outstanding net income less preferred dividends divided by average number of common shares outstanding during the period 3. None of these are correct 2. An increase in EPS from one year to the next indicates a. an unfavorable trend b. a favorable trend c. a neutral trend d. None of these are correct