The Term "Retained Earnings" Is Best Explained by Which of the Following

question 130

Multiple Choice

The term "Retained Earnings" is best explained by which of the following statements?

• A)Money set aside for the redemption of bonds.
• B)The difference between total revenue and total expenses in an accounting period.
• C)Cash retained in a separate bank account designated for emergency uses.
• D)A measure of capital generated through operating activities.

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Definitions:

Agent's Act

Refers to actions taken by an agent on behalf of a principal, where the agent has the authority to affect the principal's legal position.

Principal's Conduct

Actions or behaviors of a principal (party who has authorized an agent to act on their behalf) that can affect the principal's legal rights and liabilities.

Express Ratification

The explicit approval or confirmation of an act or contract by all parties involved, often necessary for the act's validity.

Manifests Assent

The demonstration of agreement to the terms of a contract, often through an overt action or explicit consent.