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

question 96

Multiple Choice

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

• A)net income is less than dividends.
• B)there was a net income and no dividends.
• C)additional investments are less than net losses.
• D)net income is greater than dividends.

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Definitions:

Reorder Point

The inventory level at which a new order should be placed to replenish stock before it runs out.

Digestive Tract

The series of organs in the body through which food passes, nutrients are absorbed, and waste is eliminated.

Muscle Tissue

A tissue composed of fibers capable of contracting to effect bodily movement.

Epithelial

Pertaining to the epithelium, a layer of cells covering the body surfaces or lining cavities.