The Retained Earnings Account Is Comprised of

question 18

Multiple Choice

The Retained Earnings account is comprised of

• A)cash retained in the business.
• B)cash reinvested in the business by shareholders.
• C)the cumulative earnings less dividends since the inception of the corporation.
• D)the earnings of the corporation for the current year.

---

Definitions:

Executory Contract

A contract under which both parties have not yet fully performed their contractual obligations.

Genuine Contracts

Contracts that are legally binding and enforceable, characterized by mutual assent, consideration, capacity, and legality.

Implied in Fact Contracts

Contracts arising from the conduct of the parties, indicating a mutual intention to contract, without explicit verbal agreement.

Quasi Contract

An obligation imposed by law to prevent unjust enrichment, even though no actual agreement exists between the parties involved.