Which of the Following Would Eventually Cause Retained Earnings to Increase

question 118

Multiple Choice

Which of the following would eventually cause Retained Earnings to increase?

• A)Receiving cash for services provided in a prior month
• B)Incurring utilities that will be paid for next month
• C)Receiving cash for services to be provided next month
• D)Performing services for which cash will be received next month

---

Definitions:

Real GDP

The production of goods and services valued at constant prices.

Credibility

The quality of being trusted and believed in, often based on a reputation for honesty and reliability.

Indexed

A term referring to the adjustment of income, benefits, or prices in accordance with changes in a price index, typically to preserve purchasing power.

Inflation

A sustained increase in the general price level of goods and services in an economy over a period of time, leading to a decrease in the purchasing power of money.