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:

• A)common stock.
• B)retained earnings.
• C)revenue.
• D)gross profit.

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Definitions:

Output

The cumulative production of goods or services by a corporation, industry, or the entire economy.

Supply Curve

A graph showing the relationship between the price of a good and the amount of the good that suppliers are willing to sell at that price.

Market Demand

The total amount of a product or service that all consumers in a market are willing and able to purchase at various prices.

Equilibrium Price

This is the price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, resulting in a state of market balance.