Which of the Following Statements About Retained Earnings Is Correct

question 192

Multiple Choice

Which of the following statements about Retained Earnings is correct?

• A)Retained Earnings represents cash available to pay dividends to stockholders.
• B)Retained Earnings cannot be restricted by loan covenants.
• C)Retained Earnings generally consists of cumulative net income less any net losses and dividends since inception.
• D)Retained Earnings is reduced by the par value of the common stock that is issued.

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Definitions:

Employment Law

The area of law that deals with the rights and obligations in the work relationship between employers and employees, including matters such as wages, working conditions, discrimination, and termination.

Constructive Dismissal

When an employer commits a fundamental breach of the contract, such as by unilaterally changing a key term of the contract, the employee can treat the breach as a termination

Due Process

The legal requirement that the state must respect all legal rights owed to a person, encompassing a fair and formal procedure.

Sexist

Prejudiced beliefs or discrimination based on a person's sex or gender, often manifesting in practices that disadvantage women.