Which of the Following Statements Regarding the Retained Earnings Account

question 40

Multiple Choice

Which of the following statements regarding the retained earnings account is NOT true?

• A)It normally has a credit balance.
• B)Its balance is increased by revenues.
• C)Its balance is decreased by expenses.
• D)Its balance is increased by the declaration of dividends.

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Definitions:

Insider-Trading Scheming

Insider-trading scheming involves the illegal practice of trading a public company's stock or other securities based on material, non-public information about the company.

Computer Program

A set of instructions written in a programming language that is executed by a computer to perform a specific task.

Justifiable Use

Circumstances under the law where actions, such as the use of force, are legally permissible due to their necessity in preventing harm or achieving a legitimate purpose.

Felony

A serious crime usually punishable by imprisonment for more than one year or by death.