What Type of Account Is Retained Profits

question 55

Multiple Choice

What type of account is retained profits?

• A) Asset
• B) Liability
• C) Income
• D) Equity

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Definitions:

Date of Acquisition

Date of Acquisition is the specific date on which an asset was acquired or a company was purchased, crucial for financial reporting and valuation purposes.

Common Stock

Common stock represents ownership shares in a corporation, giving holders voting rights and potential dividends, but with lower priority in bankruptcy.

Par Value

The face value of a bond or stock as stated on the certificate or instrument, which does not necessarily reflect its market value.

Fair Value

The proceeds from divesting an asset or the expense for reallocating a liability in a conventional transaction between market stakeholders at the calculation date.