The Balance in Retained Earnings at the End of the Year

question 12

Multiple Choice

The balance in retained earnings at the end of the year is determined by retained earnings at the beginning of the year:

• A) Plus revenues, minus liabilities.
• B) Plus accruals, minus deferrals.
• C) Plus net income, minus dividends.
• D) Plus assets, minus liabilities.

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Definitions:

Lacuna

A small space, gap, or cavity in the structure of bone or cartilage, often housing cells.

Yellow Bone Marrow

A type of bone marrow composed mainly of fat cells, found in the central cavities of long bones.

Red Bone Marrow

The type of bone marrow that produces blood cells, including red blood cells, white blood cells, and platelets.

Proximal Epiphyses

The end parts of a long bone that are closest to the body's center, involved in growth and development.