The ________ Account on the Balance Sheet Shows Profits That

question 97

Multiple Choice

The ________ account on the balance sheet shows profits that the firm has reinvested in the company.

• A) retained earnings
• B) stockholder's equity
• C) intangible assets
• D) notes payable

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Definitions:

Accountant

A professional who is responsible for keeping and interpreting financial records, ensuring accuracy and compliance with laws.

Economist

A professional who studies the production, distribution, and consumption of goods and services, focusing on economic theories and practices.

Interest

The charge for obtaining funds, often shown as a percentage of the loan amount.

Explicit Cost

Direct, out-of-pocket expenses incurred in the operation of a business, such as wages or rental payments.