If a Firm Has $1 000 000 in Retained Earnings

question 133

Short Answer

If a firm has $1 000 000 in retained earnings, what does this mean?
That the firm paid out $1 000 000 this year in dividends
That the company is owed $1 000 000 by its creditors but has not yet collected the money
That the firm has $1 000 000 in the bank
That the company's net profits less its dividend payments equals $1 000 000
That the company has saved $1 000 000 during the period since the last balance sheet was made up

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Definitions:

Techniques

Methods or ways of carrying out a particular task, especially in a skilled or proficient manner.

Reactive

Refers to responding to stimuli after they have occurred, rather than anticipating or initiating action.

Evocative

Having the ability to elicit a strong mental, emotional, or physical response.

Person-Environment Interaction

This term describes the dynamic and reciprocal relationship between individuals and their surroundings, where both influence and are influenced by each other.