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

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Definitions:

Dependent

A variable in an experiment or study that is expected to change in response to changes in another variable called the independent variable.

Food Poisoning

An illness caused by consuming contaminated food, which is typically infectious or toxic in nature.

Random Phenomenon

An event or process in which all the outcomes occur in unpredictable proportions.

Independent

Independent refers to variables or events in statistics and probability that are not affected by each other, meaning the occurrence or change in one does not affect the other's occurrence or value.