Which of the Following Statements About Retained Profits Is True

question 19

Multiple Choice

Which of the following statements about retained profits is true?

• A) Retained profits is the sum of past net profits/losses minus dividends declared.
• B) Retained profits indicates the total profits earned by a company since its inception.
• C) If a company does not pay a dividend,it cannot decrease.
• D) Retained profits is the current year's profit.

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Definitions:

Optimizing Behavior

Actions or decision-making processes aimed at achieving the best possible outcome or maximizing effectiveness under given circumstances.

Strengths

The natural talents and abilities that individuals possess which enable them to perform at their best.

Flow

A mental state in which a person performing an activity is fully immersed in a feeling of energized focus, full involvement, and enjoyment.

External Rewards

Incentives provided by external factors, such as money, praise, or trophies, which motivate behavior.