Retained Earnings Are

question 71

Multiple Choice

Retained earnings are:

• A)the accumulated value of past profits not yet paid out in dividends to shareholders
• B)the face value of the ordinary shares issued by the FI
• C)a special reserve set aside out of retained earnings to meet expected and actual losses on the portfolio
• D)the difference between the price the public paid for common stock or shares when originally offered and their par values times the number of shares outstanding

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Definitions:

Current Liabilities

Financial obligations a company is due to pay within a year, including accounts payable, short-term loans, and taxes owed.

Stockholders' Equity

Represents the ownership interest of shareholders in the corporation, calculated as total assets minus total liabilities.

Noncumulative Preferred Stock

A type of preferred stock where dividend payments are not required to be paid in periods when they are not declared.

Dividends Received

The payments a shareholder receives from a company out of its profits or reserves as a return on the shareholder's investment.