The Portion of Net Income That Is Held by a Firm

question 48

Multiple Choice

The portion of net income that is held by a firm for future growth comprises which one of the following balance sheet accounts?

• A)capital surplus
• B)common stock
• C)internal earnings
• D)retained earnings
• E)net earnings

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Definitions:

Regulates

Refers to the process of controlling or managing something according to certain standards or rules.

Attributed

Assigned or credited to a particular source or cause.

Tobacco

A plant whose leaves are harvested and processed for smoking, chewing, or snuff; known for its nicotine content.

Deaths

The end of life in organisms; the permanent cessation of all vital functions.