If Retained Earnings Decreased During the Year, and No Dividends

question 103

Multiple Choice

If retained earnings decreased during the year, and no dividends were paid, which of the following must be true?

• A) Expenses for the year exceeded revenues.
• B) The company did not have enough cash to pay its expenses.
• C) Total stockholders' equity increased.
• D) Liabilities increased during the year.

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Definitions:

Behaviorism

A theoretical outlook within psychology that emphasizes the study of observable behaviors, rather than internal mental states, as the primary source of psychological data.

Hybrid Brain

A hybrid brain combines biological and artificial components, aiming to enhance cognitive functions or compensate for neurological deficits.

Social Cognition

The way an individual understands his or her own social world.

Experiential

Related to or derived from direct experience or the process of actively engaging in an activity, rather than theoretical knowledge.