Which of the Following Items Would Increase the Retained Earnings

question 183

Multiple Choice

Which of the following items would increase the retained earnings balance?

• A) Prior period adjustment for understatement of net income.
• B) Sale of treasury shares at more than cost.
• C) Share dividends.
• D) Net losses.

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Definitions:

Obsessive-Compulsive Disorder

A mental disorder characterized by unwanted, persistent thoughts (obsessions) and repetitive behaviors (compulsions) that an individual feels driven to perform.

Exposure and Response Prevention

A behavioral therapy technique often used for treating obsessive-compulsive disorder, involving exposure to the source of fear and refraining from the compulsive behavior that typically follows.

Compulsions

Compulsions are repetitive behaviors or mental acts driven by anxiety or stress, often seen in disorders like OCD.

Feared Stimulus

A specific object, situation, or activity that evokes an intense fear response in an individual.