Which One of the Following Creates a Decrease in Retained

question 4

Multiple Choice

Which one of the following creates a decrease in retained earnings?

• A)Prepaid assets.
• B)Equipment.
• C)Dividends.
• D)Merchandise inventory not sold.

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Definitions:

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment’s cost.

Lottery

A form of gambling involving the drawing of numbers at random for a prize.

Compounded Monthly

Interest on an investment or loan calculated monthly and added to the principal sum for future interest calculations.

Pay Off

To settle a debt or obligation by making a payment, either in partial settlements or in full, to clear the owed amount.