Which of the Following Statements Is True About Retained Earnings

question 99

Multiple Choice

Which of the following statements is true about retained earnings?

• A)Retained earnings represents cash available to pay dividends to stockholders.
• B)Retained earnings cannot be restricted by loan covenants.
• C)Retained earnings generally consists of cumulative net income less any net losses and dividends since inception.
• D)Retained earnings is reduced by the par value of stock splits.

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Definitions:

Reinforcement Theory

A concept in psychology suggesting that behavior can be shaped or modified by its consequences, through rewards or punishments.

Environmental Consequences

The outcomes or impacts of actions and decisions on the natural environment, including effects on air, water, and land.

Human Behaviour

The study of how people act, interact, and respond in different environments and social setups.

Enactive Mastery

A concept from self-efficacy theory referring to gaining confidence through successfully performing a task or skill.