Which of the Following Will Not Affect Retained Earnings

question 33

Multiple Choice

Which of the following will not affect retained earnings?

• A) declaration of a stock dividend
• B) payment of a cash dividend previously disclosed
• C) adjustment for an error of a prior period
• D) net income
• E) net loss

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Definitions:

Marginal Cost (MC) Curves

Graphs showing the cost of producing one additional unit of a good, illustrating how the cost varies with the level of output.

Diminishing Returns

A rule in economics that holds that after reaching a certain level, further investments in a specific sector will not yield higher returns if all other conditions stay the same.

Law of Demand

The economic principle stating that as the price of a good increases, demand for that good will decrease, and vice versa.

Marginal Cost (MC) Curve

A graphical representation showing how the cost to produce one additional unit of output changes as production volume increases.