The Value of Retained Earnings on the Corporate Balance Sheet

question 125

Multiple Choice

The value of retained earnings on the corporate balance sheet represents the amount of earnings:

• A) not paid out in dividends this period.
• B) that remains in cash.
• C) over and above corporate income taxes.
• D) reinvested in the firm since its inception.

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Definitions:

DVCs

This abbreviation can stand for "Dynamic Voltage and Frequency Scaling," an energy-saving technique in computing, but in economic terms, NO.

Infrastructure

The interconnected network of large-scale capital goods (such as roads, sewers, electrical grids, railways, ports, and the Internet) needed to operate a technologically advanced economy.

Entrepreneurial Class

A segment of society that is involved in or has the capacity to undertake new business ventures and innovate, often leading to job creation and economic development.

Capital Investment

Funds invested in a business with the intent of enhancing its capacity or operations, often involving expenditures on equipment or infrastructure.