Decreases in Retained Earnings That Represent Costs of Assets or Services

question 64

Multiple Choice

Decreases in retained earnings that represent costs of assets or services that are used to earn revenues are called:

• A)Liabilities
• B)Equity
• C)Withdrawals
• D)Expenses
• E)Contributed capital

---

Definitions:

Counteroffer

An offer made in response to another offer, rejecting the original offer and presenting new terms for an agreement.

Option

A separate contract in which an offeror agrees not to revoke her offer for a stated period of time in exchange for some valuable consideration.

Reasonable Time

A period that is fair and appropriate given the circumstances, often used in contracts to define a period for the performance of an obligation.

Subjective Approach

A perspective or method that relies on personal opinions, interpretations, feelings, or tastes, rather than objective or external facts.