All of the Following Statements Regarding Retained Earnings Are True

question 23

Multiple Choice

All of the following statements regarding retained earnings are true except

• A)retained earnings represents a claim on cash.
• B)a debit balance in Retained Earnings indicates a deficit.
• C)some companies may restrict the availability of retained earnings for dividends.
• D)retained earnings is net income that a company retains in a business.

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Definitions:

Good Samaritan Act(s)

Laws designed to protect individuals who offer help and medical assistance in emergency situations from legal liability.

Providing Assistance

The act of giving support, help, or aid to individuals or groups, often in specialized contexts such as legal, health, or financial services.

Injured

State of being physically harmed or damaged.

Civil Law

A legal system focused on resolving disputes between individuals and organizations, concerning matters such as contracts, property, and family relationships.