Which of the Following Transactions Affects Total Retained Earnings

question 34

Multiple Choice

Which of the following transactions affects total retained earnings?

• A)Purchase of treasury stock
• B)Payment of previously declared cash dividend
• C)Declaration of a stock dividend
• D)Declaration of a stock split

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Definitions:

M2

Includes all elements of M1 along with near money, such as savings deposits, time deposits under $100,000, and non-institutional money market funds.

M1

This term identifies the core components of the money supply, focusing primarily on currency and liquid assets held by the public.

Trade Deficit

Occurs when a country's imports exceed its exports during a given time period, indicating that it is buying more foreign products than it is selling domestically.

Nuclear Bomb

A weapon of mass destruction that releases energy through nuclear reactions, capable of causing widespread devastation and loss of life.