Which of the Following Transactions Affects Both Retained Earnings and Net

question 68

Multiple Choice

Which of the following transactions affects both retained earnings and net income?

• A)The payment of a cash dividend.
• B)The recording of revenue for services provided.
• C)The issuance of stock in exchange for cash.
• D)The borrowing of money from a bank.

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Definitions:

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values from the mean.

Payoff

The return or reward received from an investment or action.

Outcome Yields

The results obtained from a particular action or set of circumstances, typically measured in terms of benefits, profits, or yields.

Investment Opportunity

A specific financial asset, product, or project that an individual, organization, or entity invests in with the expectation of generating a favorable future return.