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

question 64

Multiple Choice

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

• A)net income is less than dividends.
• B)a net loss is less than dividends.
• C)additional investments are less than net losses.
• D)net income is greater than dividends.

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Definitions:

Law of Effect

A psychological principle suggesting that behaviors followed by satisfactory outcomes are likely to recur, while those followed by unsatisfactory outcomes are less likely to be repeated.

Satisfying Effects

Positive outcomes or feelings that result from fulfilling or exceeding one's needs or expectations.

Stimulus

Any occurrence or state that triggers a response from a biological entity.

Shaping

A method of behavior modification that involves reinforcing behaviors that are successively closer to the desired behavior.