The Purpose of a Statement of Retained Earnings Is To

question 216

Multiple Choice

The purpose of a statement of retained earnings is to:

• A)estimate the current value of a company's assets.
• B)report the way that net income and dividends affected the financial position of the company during the period.
• C)show where the cash is flowing into and out of a company.
• D)report the specific revenues and expenses arising during the period.

---

Definitions:

Embezzlement

The act of dishonestly withholding or stealing funds that have been entrusted to one's care.

Bank Fraud

The use of potentially illegal means to obtain money, assets, or other property owned or held by a financial institution, or to obtain money from depositors by fraudulently posing as a bank or other financial institution.

Foreign Corrupt Practices Act

A United States federal law aimed at preventing the bribery of foreign government officials to assist in obtaining or retaining business.

Foreign Corrupt Practices Act

U.S. legislation aimed at preventing companies and their representatives from bribing foreign officials to gain a business advantage.