Retained Earnings Are a Portion of Owner's Equity That Has

question 87

Multiple Choice

Retained earnings are a portion of owner's equity that has:

• A) accumulated over time, but hasn't been paid to investors through dividends.
• B) all forms of long-term liabilities.
• C) been paid to owners in dividends.
• D) been used to pay debts.
• E) none of these

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Definitions:

Consumer Surplus

The separation between the total amount consumers are equipped and willing to pay for a good or service and what is effectively paid.

Total Surplus

The sum of consumer and producer surplus, reflecting the total benefit to society from the production and consumption of goods and services.

Consumer Surplus

The split between the maximum total consumers are prepared to pay for a product or service and the actual payment.

Producer Surplus

The gap between the minimum amount producers are willing to accept for providing a good or service and the actual amount they end up receiving.