Which of the Following Explains the Change in Retained Earnings

question 87

Multiple Choice

Which of the following explains the change in Retained Earnings from the beginning of the year to the end of the year?

• A) revenues and expenses
• B) contributions by owners
• C) purchases of inventory
• D) a purchase of a plant asset

---

Definitions:

Ratio Level

A scale of measurement where there is a true zero point, allowing for the comparison of absolute magnitudes and the calculation of ratios.

Measurement Precision

The degree to which repeated measurements under unchanged conditions show the same results.

Nominal Levels

The simplest form of categorization of data without any order or rank among the categories, where numbers serve merely as labels.

Mutually Exclusive

Events or conditions that cannot occur at the same time.