Which of the Following Best Describes Retained Earnings

question 67

Multiple Choice

Which of the following best describes retained earnings?

• A)Cash available for dividends.
• B)The amount initially invested in the business by stockholders.
• C)Cash available for expansion and growth.
• D)Income that has been reinvested in the business rather than distributed as dividends to stockholders.

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Definitions:

Labor Market

The supply and demand for labor, where employers seek to hire workers, and workers look for jobs, determining employment levels and wages.

Labor Supply Curve

A graphical representation that shows how the quantity of labor supplied by workers changes in response to changes in wages.

Profit-maximizing

The process by which a firm determines the price and output level that returns the greatest profit.

Selling Price

The amount of money for which a product or service is sold to customers.