Which One of the Following Equations Represents Retained Earnings Activity

question 43

Multiple Choice

Which one of the following equations represents retained earnings activity?

• A) Beginning balance + net income + dividends = profits for the year
• B) Beginning balance + cash inflows - cash outflows = ending balance
• C) Beginning balance + dividends - net income = ending balance
• D) Beginning balance + net income - dividends = ending balance

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Definitions:

Customers Served

The number of individual clients or customer accounts that receive goods or services from a business over a specific period.

Flexible Budget

An adaptive financial plan that changes in accordance with variations in volume or activity rates.

Variable Cost Estimates

Projections of costs that change in relation to the level of production or sales volume.

Facility Expenses

Costs associated with the physical maintenance and operation of a business's buildings and equipment.