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:

Funds

Financial resources, including money or other assets, that are set aside for a specific purpose or investment.

Chapter 7's Federal Exemptions

Specific exemptions under Chapter 7 bankruptcy law that allow individuals to keep certain assets from being used to pay creditors.

Exempt

Describes the status of being free from an obligation, duty, or requirement set forth by legal, regulatory, or other rules.

Motor Vehicle

A road vehicle, such as a car or motorcycle, powered by an internal combustion engine or electric motor, used for transporting passengers or goods.