Your Personal Balance Sheet Provides

question 38

Multiple Choice

Your personal balance sheet provides

• A)an estimate of your net worth at a point in time.
• B)an illustration of how your wealth has changed over time.
• C)a summary estimate of your expenses and income over the previous year.
• D)a pro forma budget for the coming year.

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Definitions:

Retained Earnings

The portion of a company's net income that is kept within the company rather than distributed to shareholders as dividends.

Net Income

After-tax and expense deductions from total revenue, the remaining profits of a company.

Cash Dividends

Cash distributions given by a company to its stockholders out of its earnings.

Paid-in Capital

The amount of money that a company has received from shareholders in exchange for shares of stock.