Which of the Following Events Will Cause Retained Earnings to Increase

question 137

Multiple Choice

Which of the following events will cause retained earnings to increase?

• A)Dividends declared by the Board of Directors.
• B)Net income reported for the period.
• C)Net loss reported for the period.
• D)Issuance of stock in exchange for cash.

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Definitions:

Imperfect Competitor

A firm or entity in a market structure that does not meet the conditions of perfect competition, often possessing some control over its products' prices.

Total Revenue Product

The total revenue generated from selling the output produced by an additional unit of a factor of production, such as labor or capital.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource, assuming other factors remain constant.

Wage Rate

The standard amount of compensation that employees receive in exchange for performing a specific task or job per time period.