Which of the Following Statements Is CORRECT

question 35

Multiple Choice

Which of the following statements is CORRECT?

• A) If a firm reports a loss on its income statement, then the retained earnings account as shown on the balance sheet will be negative.
• B) Since depreciation is a source of funds, the more depreciation a company has, the larger its retained earnings will be, other things held constant.
• C) A firm can show a large amount of retained earnings on its balance sheet yet need to borrow cash to make required payments.
• D) Common equity includes common stock and retained earnings, less accumulated depreciation.
• E) The retained earnings account as shown on the balance sheet shows the amount of cash that is available for paying dividends.

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Definitions:

Domestic Labor

Work performed within the household, such as cleaning, cooking, and childcare, often undervalued and disproportionately assigned to women.

Care Giving

The act of providing care and assistance to individuals who need help due to various reasons such as age, illness, disability, or vulnerability.

Socially Constructed

Pertaining to concepts, categories, or conditions defined by societal norms, values, and interactions rather than innate biological factors.

Shift With Social Changes

The process of adaptation or transformation in response to evolving societal norms, values, and structures.