Which of the Following Statements About Retained Profits Is TRUE

question 22

Multiple Choice

Which of the following statements about retained profits is TRUE?

• A) Retained profits is the sum of past net profits/losses minus dividends declared.
• B) Retained profits indicates the total profits earned by a company since its inception.
• C) If a company does not pay a dividend, it cannot decrease.
• D) Retained profits is the current year's profit less dividends paid.

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Definitions:

Case study

An in-depth examination of a single example or case, often used in qualitative research to explore a complex issue in detail.

Systematic observation

An observational method that involves structured and consistent observation according to a predefined plan.

Quantitative

Refers to data that can be expressed numerically, often used in statistical analysis to quantify behaviors, opinions, or other defined variables.

Qualitative

Relating to, measuring, or measured by the quality of something rather than its quantity, often involving descriptive data.