Which of the Following Statements Best Describes the Relationship Between

question 85

Multiple Choice

Which of the following statements best describes the relationship between profit for the period and the ending balance in retained earnings?

• A)Profit for the period reduces the ending balance of retained earnings.
• B)Retained earnings at the end of the period increases the amount of profit.
• C)Profit for the period increases the ending balance of retained earnings.
• D)Profit for the period has no effect on the ending balance of retained earnings.

---

Definitions:

Product

A substance that is formed as the result of a chemical reaction.

Reaction

A process in which substances interact to form one or more new substances with different chemical and physical properties.

Organic Product

A compound containing carbon atoms that is typically derived from living organisms or their by-products.

Reaction

A process in which one or more substances (the reactants) undergo chemical change to form new substances (the products) with different physical and chemical properties.