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:

Opposite Meanings

Terms or words that have completely different or contrary meanings to each other.

Reification

Turning an abstract into a concrete thing—for example, assuming that because there are measures of intelligence, there is a unitary, tangible entity called intelligence.

Abstraction

The process of removing physical, specific details to focus on ideas or concepts at a more general, simplified level.

Real Thing

An authentic object or concept, as opposed to an imitation or reproduction.