Which of the Following Best Defines Retained Earnings

question 45

Multiple Choice

Which of the following best defines retained earnings?

• A) the part of income that households retain after paying taxes
• B) the part of income that businesses retain after paying taxes
• C) the part of income that corporations pay to their owners in the form of dividends
• D) the part of income that corporations do not pay to their owners in the form of dividends

Recognize the importance of environmental factors and community infrastructure in disease prevention.

Understand the historical development of public health initiatives and their impact on community health.

Analyze the role of government and non-governmental organizations in the advancement of public health.

Identify key figures and their contributions to public health and nursing.

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Definitions:

Average Collection Period

The ratio of accounts receivable to daily sales. Also called days’ receivables.

Financial Statements

Documents that report the financial activities and condition of a business or entity, including the balance sheet, income statement, and cash flow statement.

After-Tax Profit Margin

A profitability ratio calculated by dividing net income after taxes by net sales, showing what percentage of sales translates into profits after all expenses.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company in using its assets to generate revenue, calculated by dividing total revenue by average assets.