The Amount of Earnings Not Paid as a Dividend Is

question 30

Multiple Choice

The amount of earnings not paid as a dividend is ____.

• A)always kept as cash within the firm
• B)current income for the shareholders
• C)deferred income and accumulated in retained earnings in the balance sheet
• D)accumulated in retained earnings in the income statement

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Definitions:

Comparative Advantage

An economic principle that states a country should produce and export goods for which it is more efficient at producing than other countries, and import goods that it is less efficient at producing.

Terms of Trade

The ratio of an index of a country's export prices to an index of its import prices, affecting the balance of trade.

Production Possibilities

The different combinations of goods and services that an economy can produce given its available resources and technology, typically represented by a curve.

International Trade

The exchange of goods and services between countries, allowing economies to grow by specializing in the production of goods they can produce most efficiently.