A Firm Had Retained Earnings of $100,000 in 2012 and $125,000

question 72

Multiple Choice

A firm had retained earnings of $100,000 in 2012 and $125,000 in 2013. The increase in retained earnings from 2012 to 2013 is

• A) 12.5 percent.
• B) 20 percent.
• C) 25 percent.
• D) 125 percent.

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Definitions:

Mistake of Law

An error made by a person about the legal implications of their actions or the legal requirements of a situation.

Rectification

The legal process of correcting a mistake in a contract or legal document so that it accurately reflects the intentions of the parties involved.

Person's Judgment

The capacity or ability of an individual to make considered decisions or come to sensible conclusions.