Which of the Following Is a True Statement Regarding Owners

question 58

Multiple Choice

Which of the following is a true statement regarding owners' equity?

• A)APB Statement 4 and SFAC No. 6 both reflect the entity view of the firm.
• B)Owners' equity consists of only two components: contributed capital and retained earnings.
• C)In a sole proprietorship, there is no legal distinction between contributed capital and earned capital.
• D)Dividends are legally paid only out of retained earnings.

---

Definitions:

Campaign Finance

The funds that are raised and spent to promote candidates, political parties, or policy initiatives in election contexts.

Democide

The murder of any person or people by their government, including genocide, politicide, and mass murder.

Accounting Abuses

refers to the manipulation or misrepresentation of financial records and reports to conceal the actual financial condition or performance of an entity.

Overcharging Clients

The unethical practice of charging clients more than is fair or initially agreed upon for services or goods.