Which of the Following Statements Is CORRECT

question 61

Multiple Choice

Which of the following statements is CORRECT?

• A) Since depreciation increases the firm's net cash provided by operating activities,the more depreciation a company has,the larger its retained earnings will be,other things held constant.
• B) A firm can show a large amount of retained earnings on its balance sheet yet need to borrow cash to make required payments.
• C) Common equity includes common stock and retained earnings,less accumulated depreciation.
• D) The retained earnings account as reported on the balance sheet shows the amount of cash that is available for paying dividends.
• E) If a firm reports a loss on its income statement,then the retained earnings account as shown on the balance sheet will be negative.

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Definitions:

Diploid

Refers to cells that have two sets of chromosomes, one from each parent.

Meiosis

A type of cell division that reduces the chromosome number by half, resulting in four distinct daughter cells, each with half the number of chromosomes of the parent cell, crucial for sexual reproduction.

Chromosomes

Threadlike structures made of DNA molecules that contain the genes and convey genetic information in the nucleus of cells.

Ethylene

A gaseous plant hormone that regulates various aspects of growth, development, and responses to stress.