The Retained Earnings of a Corporation Is The

question 149

Multiple Choice

The retained earnings of a corporation is the:

• A)internally generated capital that is raised from profitable operations.
• B)externally generated capital that is contributed by shareholders.
• C)externally generated capital that is raised from banks and other creditors.
• D)internally generated capital that from the direct investment of employees.

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Definitions:

Withheld

Refers to a portion of an individual's earnings or payments that is not provided to them but is instead held back, often for tax purposes.

Matched by Employer

Pertains to contributions or payments, typically toward FICA taxes or retirement funds, that an employer duplicates for an employee.

Contingent Liability

A potential financial obligation that may occur or become payable in the future, depending on the outcome of a specific event.

Reasonably Possible

A term used in accounting and law to describe a situation or outcome that, while not certain, is more than a remote possibility.