The Retained Earnings Account Has a Beginning Balance of $321,975

question 81

Multiple Choice

The retained earnings account has a beginning balance of $321,975 and an ending balance of $356,413.Net income is $40,251.Which of the following statements is true?

• A)$5,813 would be subtracted when determining cash flows from financing activities.
• B)$40,251 would be added when determining cash flows from financing activities.
• C)$34,438 would be added when determining cash flows from financing activities.
• D)$321,975 would be added when determining cash flows from operating activities.

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Definitions:

Total Utility

The total satisfaction received from consuming a certain quantity of goods or services.

Consumer Surplus

The difference between the maximum amount a consumer is willing to pay for a good or service and the actual amount they do pay.

Marginal Utility

The additional satisfaction or utility that a consumer receives from having one more unit of a good or service.

Marginal Utility

The additional satisfaction or utility a consumer gains from consuming one more unit of a good or service.