Which of the Following Is True About Retained Earnings

question 81

Multiple Choice

Which of the following is true about retained earnings?

• A)Declaring a stock split will decrease retained earnings.
• B)Appropriating retained earnings will increase total stockholders' equity.
• C)Distributing stock dividends will decrease retained earnings.
• D)Declaring cash dividends will decrease retained earnings.

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Definitions:

Standing By

The act of remaining ready or available to act or offer help while waiting for further instruction or developments.

Legal Principle

A foundational concept or established rule of law that guides judicial decisions and legal reasoning.

Lower Courts

Courts that have jurisdiction to hear cases of less significance or that are the first level of the court system, also known as inferior courts.

Higher Courts

Judicial bodies at the upper levels of a legal system, which have the authority to hear appeals from lower court decisions.