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The Portion of Net Income That the Company Has Kept

question 189

Multiple Choice

The portion of net income that the company has kept over a period of years and not used for dividends is called:


Definitions:

Holder in Due Course

A person or entity that has acquired a negotiable instrument in good faith and has certain protections under the law.

Negotiable Instrument

A document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer named on the document.

Rights

Entitlements or permissions, usually legal or moral, that individuals or groups have to certain actions or claims, without interference from others.

Promissory Note

is a written, signed document in which one party promises to pay another party a specific sum of money at a future date or on demand.

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