On the Statement of Retained Earnings

question 67

Multiple Choice

On the statement of retained earnings:

• A)dividends declared increase net income and are added to calculate the end-of-year balance of retained earnings.
• B)dividends declared are subtracted to calculate the end-of-year balance of retained earnings.
• C)dividends declared are not used to calculate the end-of-year balance of retained earnings.
• D)dividends declared are never reported.

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Definitions:

Defense Mechanisms

Covert psychological tactics utilized to deter stress provoked by undesirable thoughts or feelings.

Faulty Logic

A type of reasoning or thought process that is flawed, erroneous, or does not follow the principles of sound reasoning.

Cognitive-affective Units

are mental structures that determine how individuals process information and emotions in relation to their beliefs and attitudes.

Cognitive Therapists

Mental health professionals who use approaches designed to change dysfunctional beliefs and thought patterns, typically to treat depression, anxiety, and other psychological disorders.