What Is the Result If the Amount of Net Income

question 170

Multiple Choice

What is the result if the amount of net income for the year is less than the amount of the Dividends?

• A)Retained Earnings increases
• B)Cash balance decreases
• C)Cash balance increases
• D)Retained Earnings decreases

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Definitions:

Producer Surplus

The additional revenue producers earn by selling a product at a market price above their minimum acceptable price.

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy.

Low Supplier Power

Refers to a market condition where suppliers have limited control over the price and terms of products and services due to high competition or low demand.

Threat from Substitutes

The potential for consumers to switch to alternative products that fulfill the same need, affecting demand.