Which of the Following Best Defines Retained Earnings

question 185

Multiple Choice

Which of the following best defines retained earnings?

• A)They are the amounts paid out as dividends.
• B)They are the amount of revenues a corporation receives for the sale of its products, minus its costs of production, as measured by its accountants.
• C)They are interest paid to creditors.
• D)They are profits not paid out to shareholders.

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Definitions:

Accident-prone Drivers

Individuals who have a higher likelihood of being involved in vehicular accidents due to behavior or other factors.

Bonding

The process of establishing a secure or insured relationship, often through a financial guarantee or a bond, to protect against losses or damages.

Wrongful Act

An action that is illegal or immoral, which can lead to civil liability or criminal charges for the person who commits it.

Subrogation

The legal process by which one party, such as an insurer, assumes another's legal right to collect a debt or damages after having paid for the loss.