If the Retained Earnings Account Increases from the Beginning of the Year

question 97

Multiple Choice

If the retained earnings account increases from the beginning of the year to the end of the year, then

• A) profit is greater than dividends.
• B) a loss is less than dividends.
• C) additional investments are less than reported losses.
• D) dividends were paid.

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Definitions:

Financial Planning Models

Tools or software used for projecting future financial results and for strategic financial planning, often in the form of spreadsheets or specialized software.

Financial Relationships

Financial relationships refer to the connections between different financial variables, metrics, and performance indicators that help in analyzing and evaluating the financial health of an entity.

Accounting Relationships

The connections and correlations between different financial statements and accounts within a business's accounting system.

Capital Intensity Ratio

A measure of the amount of capital needed per dollar of revenue, indicating the level of investment required to sustain operations.