The Major Types of Transactions That Affect Retained Earnings Are

question 7

Multiple Choice

The major types of transactions that affect retained earnings are:

• A)paid-in capital and common stock.
• B)assets and liabilities.
• C)revenues,expenses,and dividends.
• D)revenues and liabilities.

---

Definitions:

Disposable Income

Income remaining after deduction of taxes and social security charges, available to be spent or saved as one wishes.

Consumption Spending

The total money spent by households in an economy on goods and services.

Marginal Propensity

The fraction of an additional unit of income that is spent on consumption rather than being saved.