If the Retained Earnings Figure in a Company Balance Sheet

question 30

Multiple Choice

If the retained earnings figure in a company balance sheet increases from the beginning of the year to the end of the year, it is most probable that:

• A) profit for the year is more than dividends declared.
• B) bonus shares have been issued.
• C) additional capital has been raised during the year.
• D) profit for the year is less than dividends declared.

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Definitions:

Decay

The process of decomposition of organic matter by microorganisms, leading to the release of nutrients back into the environment.

Radiation

The emission of energy as electromagnetic waves or as moving subatomic particles, especially high-energy particles that cause ionization.

Earth

The third planet from the Sun; the only astronomical object known to harbor life, characterized by its vast oceans, breathable atmosphere, and diverse ecosystems.