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Excavate N' Fill, Inc

question 69

Multiple Choice

Excavate n' Fill, Inc., enters into a contract with Fred to fill and landscape an abandoned quarry on Fred's land. Fred advances Excavate n' Fill 10 percent of its cost. The parties rescind the contract. Excavate n' Fill's refund of the payment is

Definitions:

Retained Earnings

Retained earnings are the cumulative amount of net income left over for a company after it has paid out dividends to its shareholders, reinvested in the business, or used to pay off debt.

Treasury Stock

Shares that were issued and later reacquired by the corporation, reducing the number of outstanding shares in the market.

Common Stock

Shares of ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.