When Computing the Return on Equity, Retained Earnings Should Be

question 300

True/False

When computing the return on equity, retained earnings should be excluded from the average total stockholders' equity.

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Definitions:

Majority Rule

A decision-making principle whereby the option receiving more than half of the votes wins.

Preferred Outcome

The most favored or desired result in a decision-making process, often involving strategic considerations or personal preferences.

Unanimity Property

A principle requiring all parties involved to agree entirely on a decision, often used in decision-making processes to ensure consensus.

Ranking

The process or result of ordering items or individuals based on certain criteria, from highest to lowest or vice versa.