According to the "Marginal Principle of Retained Earnings," Dividends Are

question 100

Multiple Choice

According to the "marginal principle of retained earnings," dividends are

• A) the active variable.
• B) the passive variable.
• C) not usually paid.
• D) a certain fixed percentage of earnings.

---

Definitions:

Straight-Line Method

A technique for calculating depreciation by uniformly distributing the cost of an asset across its lifespan.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset over its useful life until a specific date.

Salvage Value

An asset’s foretold selling price at the finish of its service period.

Accumulated Depreciation

The total amount of a tangible asset's cost that has been allocated as depreciation expense over its useful life.