Which of the Following Statements Is Not Correct

question 78

Multiple Choice

Which of the following statements is not correct?

• A)Retained earnings represents a cash fund.
• B)A corporation can have a large cash balance but no retained earnings.
• C)A corporation can have a balance in the Retained Earnings account but no cash.
• D)Retained earnings represent the undistributed profits and losses of the corporation.

---

Definitions:

Balance Sheet Presentation

The method by which a company's financial position is detailed in its balance sheet, listing assets, liabilities, and equity.

Bonds

Fixed income investments representing loans made by an investor to a borrower, typically corporate or governmental.

Interest

The cost of borrowing money or the payment received for lending money, usually calculated as a percentage of the principal amount.

Exchange Rates

The monetary value of one currency when swapped for another.