A Summary of Changes in the Earnings Retained in the Corporation

question 27

Multiple Choice

A summary of changes in the earnings retained in the corporation for a specific period of time is a(n)

• A)income statement.
• B)balance sheet.
• C)statement of cash flows.
• D)retained earnings statement.

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Definitions:

Discount Rate

This rate is essential in discounted cash flow analysis for calculating the present value of future cash flows.

Present Value

The immediate financial worth of an expected future sum of money or cash flows, discounted with a predetermined rate of return.

Insurance Settlement

The payment made by an insurance company to a policyholder or claimant as compensation for a covered loss.

Discount Rate

in finance, refers to the interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows.