Which Account Below Is Not a Subdivision of Retained Earnings

question 117

Multiple Choice

Which account below is not a subdivision of retained earnings?

• A) Dividends
• B) Revenues
• C) Expenses
• D) Common stock

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Definitions:

Risk-Free Return

The return on an investment that is guaranteed not to result in any loss, often associated with government securities.

M2 Measure

A broad measure of money supply that includes cash, checking deposits, savings deposits, money market securities, mutual funds, and other time deposits.

Risk-Free Return

The theoretical return on an investment with zero risk, often associated with government bonds or treasury bills.

Jensen Measure

A performance metric that evaluates a portfolio manager's ability to generate excess returns relative to a benchmark, adjusting for risk.