Retained Earnings

question 95

Multiple Choice

Retained earnings

• A) is the same as contributed capital
• B) cannot have a debit balance
• C) changes are summarized in the retained earnings statement
• D) is equal to cash on hand

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Definitions:

ESOs

Employee Stock Options are options granted to employees as part of their compensation package, allowing them to purchase company stock at a set price.

Vesting Period

The period of time before employees earn non-forfeitable rights over employer contributions made to the employee's pension plan or stock option plan.

Up To Three Years

A phrase indicating a time frame or duration that does not exceed three years.

American Call Option

A type of options contract that gives the holder the right, but not the obligation, to buy a specified quantity of a security at a specified price within a certain time period.