Figure 32-4 -Refer to Figure 32-5.Starting from R₂ and E₃,an Increase in E₃,an

question 55

Multiple Choice

Figure 32-4
-Refer to Figure 32-5.Starting from r₂ and E₃,an increase in the budget surplus can be illustrated as a move to

• A) r₃ and E₄.
• B) r₃ and E₂.
• C) r₁ and E₄.
• D) r₁ and E₂.

---

Definitions:

Accumulated Earnings

Profits that a company retains for reinvestment rather than distributing to shareholders as dividends.

Petition

is a formal written request, typically addressed to a court or a government institution, appealing for a particular cause or action.

Injunction

A legal order issued by a court that directs an individual or entity to do or not do a specific action.

Earned Surplus Test

A financial measure used to determine the amount of income that a company has earned and is available for dividends distribution after accounting for all necessary expenses.