The Balance in the Retained Earnings Account Is Affected By

question 6

Multiple Choice

The balance in the retained earnings account is affected by:
I. Issued share capital
II. Dividends paid or provided for
III. Transfers to or from other reserve accounts
IV. Changes in accounting policies and errors

• A) II and III only.
• B) I, II, III and IV.
• C) I, II and III only.
• D) II, III and IV only.

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Definitions:

December 31

December 31 is the last day of the year in the Gregorian calendar, often associated with closing the annual accounting period for businesses.

Board of Directors

A group of elected or appointed members who jointly oversee the activities of a company or organization.

Stockholders

Individuals or entities that own shares of stock in a corporation, giving them rights to dividends and a vote in company matters.

Policies

Statements of principle and guidelines, formulated or adopted by an organization, to direct and limit actions in pursuit of its objectives.