Which of the Following Transactions Affects Retained Earnings

question 47

Multiple Choice

Which of the following transactions affects retained earnings?

• A) Declaration and payment of dividends
• B) Prepayment of rent
• C) Investments by stockholders
• D) Obtaining a new loan

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Definitions:

Volcanic Mudflows

Rapid flows of volcanic material, consisting of a mixture of water and rock fragments, that move down the slopes of a volcano.

Mantle Plume

A column of very hot rock rising up from deep within the Earth's mantle, believed to cause volcanic hotspots and other tectonic features.

Flood Basalts

Large-scale volcanic events characterized by the rapid flow of basalt lava that covers vast areas of the Earth's surface.

Rapid Subduction

A geologic process involving the quick descent of one tectonic plate beneath another plate into the mantle, often leading to significant geological events like earthquakes and volcanism.