The First Item Appearing on the Statement of Retained Earnings

question 106

Multiple Choice

The first item appearing on the statement of retained earnings is

• A) net income
• B) the ending balance of retained earnings
• C) dividends
• D) the beginning balance of retained earnings

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Definitions:

Marginal Productivity Theory

An economic theory suggesting that the payment to each factor of production equals the added productivity that one additional unit of the factor brings to the product.

Income Distribution

How the total earnings are distributed among people or families within an economic system.

MRP Curve

The Marginal Revenue Product curve, showing how the additional revenue from selling one more unit of a product changes with the quantity of the product sold.

Labor Demand Curve

A graphical representation of the quantity of labor employers are willing to hire at each possible wage rate, holding all other factors constant.