Simplify the Expression

question 42

Multiple Choice

Simplify the expression.

---

Definitions:

Retained Earnings

The cumulative amount of net income earned by a company that is kept within the company for reinvestment rather than being paid out as dividends to shareholders.

Accrual-Based Net Income

A measure of a company's financial performance that includes all earned revenues and incurred expenses, regardless of when cash transactions occur, according to the accrual principle.

Operating Income

The income generated from the primary activities of a business, not including the expenses from interest and taxes.

Intra-Entity Transfers

Transactions of assets, services, or funds within the same legal entity.