Which Inference May Be Considered Incorrect Concerning the Statement of Retained

question 43

Multiple Choice

Which inference may be considered incorrect concerning the Statement of Retained Earnings?

• A)Retained earnings of $350,500 will appear on the balance sheet as of December 31,2013.
• B)The net income in the above statement came from the income statement for the year ending December 31,2013.
• C)Dividends are shown in parentheses because they are distributions made by a company to its stockholders as a return on their investment.
• D)Retained earnings represents the amount of cash at the end of 2013.

---

Definitions:

Diaphysis

The shaft of a long bone.

Surrounds

Encompasses or encircles an area, object, or concept, typically providing a boundary or environment.

Anterior Bone

Refers to the front aspect of a bone in the body, often used in anatomical descriptions to indicate position or direction.

Cranium

The part of the skull that encloses the brain, consisting of the cranial bones.