Which of the Following Best Describes the Term "Retained Earnings

question 83

Multiple Choice

Which of the following best describes the term "retained earnings" of a company?

• A)The amount of total profits earned by a company since it began operations.
• B)The amount of claim that the owners have on the assets of the company.
• C)The future economic resources of a company.
• D)The accumulated net income of a company that has not been distributed to owners in the form of dividends.

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Understand the concept of dimensional analysis and unit conversions.

Apply dimensional analysis to convert time units.

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Definitions:

APS

Average Propensity to Save; it is a macroeconomic term that represents the proportion of income that is saved rather than spent on consumption. It is calculated by dividing total savings by total income.

APC

Average Propensity to Consume, which is the fraction of income that a person or population spends rather than saving.

APS

The Average Propensity to Save, which is the proportion of total income that is saved rather than spent on consumption.

APC

It stands for Average Propensity to Consume, indicating the fraction of income that is spent on consumption rather than savings.