Which One of the Following Statements Regarding the Balance Sheet

question 39

Multiple Choice

Which one of the following statements regarding the balance sheet for Anonymous Inc.is correct?

• A)Retained Earnings is misclassified;it should be reported in the Assets section of the balance sheet.
• B)The $207,100 shown as Retained Earnings on the balance sheet represents the cumulative amount of dividends distributed.
• C)Anonymous,Inc.is owed $310,500 from customers who have purchased goods or services from the company,but have not yet paid for them.
• D)The amount of retained earnings reported on this balance sheet represents the retained earnings at the beginning of the year.

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Definitions:

Microsystem

In ecological systems theory, the immediate environment in which individuals interact face-to-face, such as family, school, and peer groups.

Observational Learning

A learning process through watching the actions of others and then imitating or modeling those actions.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, emphasizing the effects of behavior on future behavior.

Negative Reinforcement

A process in behavioral psychology where the removal of an unpleasant stimulus strengthens a behavior.