If Retained Earnings Decreased During the Year, and No Dividends

question 50

Multiple Choice

If retained earnings decreased during the year, and no dividends were paid, which of the following statements 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 decreased
• D)Liabilities increased during the year.

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Definitions:

Mobile Killing Units

Squads deployed by Nazi Germany during World War II, responsible for mass killings, primarily by shooting.

Munich Conference

A series of meetings in 1938 where European leaders sought to appease Adolf Hitler by allowing Nazi Germany to annex the Sudetenland in exchange for a promise of no further territorial demands.

Czechoslovakia

A former country in Central Europe that existed from 1918, following the collapse of the Austro-Hungarian Empire, until its peaceful dissolution into the Czech Republic and Slovakia in 1993.

Appease Hitler

A policy pursued by some European countries in the late 1930s, aiming to avoid conflict with Nazi Germany by conceding to some of Adolf Hitler's demands.