On the Statement of Retained Earnings

question 128

Multiple Choice

On the statement of retained earnings:

• A)a net loss is shown in parentheses as a deduction.
• B)net income decreases retained earnings.
• C)dividends declared increase retained earnings.
• D)dividends paid increase retained earnings.

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Definitions:

Lorenz Curve

A graphical representation used to show the distribution of income or wealth within a society, depicting the proportion of total income earned by various segments of the population.

Income Inequality

The unequal distribution of household or individual income across the various participants in an economy.

Household Income

The combined gross income of all members of a household, typically measured over a set period of time, such as a month or a year.

Taxes

Compulsory financial charges imposed by a government on individuals, corporations, or transactions to fund public services and government activities.