Which of the Following Correctly Describes Retained Earnings

question 52

Multiple Choice

Which of the following correctly describes retained earnings?

• A)It is the cumulative earnings of a company.
• B)It represents the investments by stockholders in a company.
• C)It equals total assets minus total liabilities.
• D)It is the cumulative earnings of a company less dividends declareD.Retained earnings are the cumulative earnings not distributed to the owners.That is the cumulative net income less dividends declared.

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Definitions:

Texture

The feel, appearance, or consistency of a surface, material, or substance.

Shading

A technique used in drawing and painting to create depth, contrast, and a sense of volume by varying the darkness of color or pencil marks.

Edges

Edges in visual perception are the boundaries or contours where two different areas meet, playing a crucial role in object recognition and scene understanding.

Prosopagnosia

A cognitive disorder characterized by the inability to recognize faces, also known as face blindness.