Which of the Following Statements About Retained Earnings Is True

question 53

Multiple Choice

Which of the following statements about retained earnings is true?

• A) It is the amount of cash that has been retained from a company's earnings.
• B) It is the amount of creditors' claims on assets.
• C) It is increased when treasury stock is bought.
• D) It is the amount of corporate earnings that have been reinvested in the business

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Definitions:

Mean

It is the central value of a discrete set of numbers, specifically, the sum of the values divided by the number of values.

Sample Data

A subset of data collected from a larger population, used for analysis and inference.

Frequency Distribution

A mathematical representation showing the number of occurrences of each unique value in a dataset.

Standard Deviation

A method for assessing the level of spread or diversity among a set of data figures.