Which Statement Best Defines Retained Earnings

question 119

Multiple Choice

Which statement best defines retained earnings?

• A) They are the amounts paid out as dividends.
• B) They are the amount of revenues a corporation receives for the sale of its products, minus its costs of production, as measured by its accountants.
• C) They are interest paid to creditors.
• D) They are profits not paid out to shareholders.

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Definitions:

Relative Frequency

The proportion of times a certain value or category appears in a dataset relative to the total number of observations.

Histogram

A graphical representation of the distribution of numerical data, typically shown as bars indicating the frequency of data points within specified intervals.

Frequency

The number of times an event or occurrence takes place within a specified period or dataset.

Symmetric

Refers to a situation where a distribution or pattern shows equality or uniformity across a central point or axis.