Retained Earnings Are

question 135

Multiple Choice

Retained earnings are

• A) always equal to the amount of cash that the corporation has generated from operations.
• B) a part of the contributed capital of the corporation.
• C) a part of the shareholders' claim on the total assets of the corporation.
• D) closed at the end of each accounting period.

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Definitions:

Current Market

The existing conditions within a marketplace at a particular time, including trends, prices, and available inventory.

SIVs

Structured Investment Vehicles, which are investment funds that manage a portfolio of income-generating assets by borrowing in short-term markets to invest in long-term securities.

Commercial Paper

Short-term, unsecured promissory notes, issued by companies, typically used for the financing of accounts receivable, inventories, and meeting short-term liabilities.

Mortgages

Loans specifically created for purchasing real estate, secured by the property itself, which is to be repaid along with interest over a predetermined period.