Which of the Following Is an Indication of the Accumulation

question 40

Multiple Choice

Which of the following is an indication of the accumulation of earnings and profits beyond the reasonable needs of the business?

• A)A $200,000 earnings and profits balance
• B)$200,000 accumulated to retire debt
• C)$600,000 accumulated for shareholder loans
• D)$12,000,000 accumulated to expand operating facilities

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Definitions:

Social Networks

Platforms or websites that enable users to create profiles, share information, and connect with others online.

Business Communication

The sharing of information between people within and outside an organization to achieve business goals.

Social Media Networks

Digital platforms that enable users to create and share content or to participate in social networking with others.

Businesses

Entities engaged in commercial, industrial, or professional activities, typically with the aim of generating profits.