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:

Agency Contract

An agreement where one party (the agent) agrees to act on behalf of another (the principal) in business transactions.

Durable Power

A form of power of attorney that remains in effect even if the grantor becomes incapacitated or unable to make decisions.

Arbitration Agreements

Contracts in which parties agree to settle disputes outside of court, through an arbitration process.

Residential Care Facility

A housing option for individuals who need assistance with daily living activities but do not require the full-time health care services provided by a nursing home.