Retained Earnings Are a Component of

question 5

Multiple Choice

Retained earnings are a component of

• A) Contributed equity;
• B) Reserves;
• C) Other equity;
• D) Comprehensive income.

---

Definitions:

Semiannual Interest

Interest that is calculated and paid twice a year, often used in the context of bonds and loans.

Issuance

The process of distributing new securities, such as stocks or bonds, to investors by a corporation or government.

Interest Expense

The amount of interest payable on any borrowings, such as loans, bonds, or credit lines, within a specific timeframe.

Face Value

The nominal value printed on a financial instrument, such as a bond or stock certificate, representing its value at issuance or maturity.