If the Retained Earnings Account Increases from the Beginning of the Year

question 52

Multiple Choice

If the retained earnings account increases from the beginning of the year to the end of the year, then:

• A)profit is greater than dividends.
• B)a loss is less than dividends.
• C)additional investments are less than reported losses.
• D)no dividends were paid.

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Professional Insurance

Insurance coverage designed to protect professionals from liability claims resulting from their business activities, such as errors, omissions, or neglect.

Malpractice Insurance

A type of professional liability insurance that provides coverage to healthcare professionals for claims arising from allegations of medical errors or negligence.

Existing Risk

Refers to the current risks involved in a situation or transaction, especially those that have already been identified or assessed.

Valid Contract

A legally binding agreement that meets all required elements, including offer, acceptance, consideration, and mutual consent.