Identify Which of the Following Items Would Be Reported as Additions

question 301

Short Answer

Identify which of the following items would be reported as additions (A) or deductions (D) in a Retained Earnings Statement.
1. Net Income
2. Net Loss
3. Cash Dividends
4. Stock Dividends

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Definitions:

Commercial Impracticability

A defense in contract law allowing parties to escape liability for nonperformance when unforeseen events make fulfillment of the contract extraordinarily difficult or unfair.

Breach of Contract

Occurs when one party fails to fulfill its obligations under the agreement, giving the aggrieved party the right to seek remedies.

Conform to Contract

The act of meeting or complying with the terms and conditions outlined in a contractual agreement.

Good Faith

Acting with honesty and integrity in dealings, without intending to deceive or commit fraud.