Which of the Following Statements Is Not Correct

question 78

Multiple Choice

Which of the following statements is not correct?

• A)Retained earnings represents a cash fund.
• B)A corporation can have a large cash balance but no retained earnings.
• C)A corporation can have a balance in the Retained Earnings account but no cash.
• D)Retained earnings represent the undistributed profits and losses of the corporation.

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Definitions:

Deadweight Loss

The loss of economic efficiency that occurs when the equilibrium for a good or a service is not achieved or is not achievable.

Excise Taxes

Taxes imposed on specific goods or services, such as tobacco or alcohol, typically aimed at reducing consumption of these goods or raising revenue.

Inelastic Demand

Inelastic demand refers to a market condition where the quantity demanded of a good or service changes very little in response to price changes.

Excise Tax

A tax on the production, sale, or consumption of a particular good or service within a country.