On the Statement of Retained Earnings

question 123

Multiple Choice

On the statement of retained earnings:

• A)a net loss decreases retained earnings.
• B)net income decreases retained earnings.
• C)dividends declared increase retained earnings.
• D)a deficit ending balance in retained earnings is not allowed.

---

Definitions:

Average Productivity

The output produced per unit of input, such as labor or capital, on average.

Total Output

The total quantity of goods and services produced in an economy over a given period of time.

Capital Stock

The total amount of physical goods existing in a company or economy that can be used to produce more goods and services.

Snow-removal Business

A service-oriented business focused on removing snow from roads, driveways, and pavements to ensure safety and accessibility.