Which of the Following Is True of Retained Earnings

question 103

Multiple Choice

Which of the following is true of retained earnings?

• A)Retained earnings decrease with payment of dividends.
• B)Retained earnings increase with purchase of capital assets.
• C)Retained earnings decrease with collection of revenue.
• D)Retained earnings increase with payment on account.

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Definitions:

Sense of Purpose

The motivation that drives individuals or groups to achieve goals and objectives, providing direction and meaning to actions or projects.

Self-interest

Acting in a way that is beneficial to oneself, often without regard for others.

Attribution Theory

A psychological theory focused on how people explain their own and others' behaviors, attributing causes to either internal dispositions or external situations.

Satisfied Individuals

Persons who experience fulfillment or contentment in aspects of their life or work.