Which of the Following Will Increase a Company's Retained Earnings

question 186

Multiple Choice

Which of the following will increase a company's retained earnings?

• A)earning net income of $50,000 for the year
• B)issuing additional shares of common stock at a price above par
• C)buying additional shares of treasury stock
• D)declaring cash dividends of $0.50 per share

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Definitions:

Consumer Surplus

The difference between the maximum price a consumer is willing to pay for a good or service and the actual market price they pay.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers, typically downward sloping.

Marginal Cost

The rise in overall expenses associated with the production of an extra unit of a good or service.

Price Discrimination

A strategy for setting prices where the same or very similar products or services are offered at different prices by the same seller in various markets.