Retained Earnings at the End of the Period Is Equal

question 161

Multiple Choice

Retained earnings at the end of the period is equal to

• A) retained earnings at the beginning of the period plus net income minus liabilities.
• B) retained earnings at the beginning of the period plus net income minus dividends.
• C) net income.
• D) assets plus liabilities.

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Definitions:

Working Capital

The dollar difference between total current assets and total current liabilities.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its short-term assets.

Net Profit Margin

A profitability ratio calculated as net income divided by revenue, expressed as a percentage, indicating how much profit a company generates from its total sales.