The Term "Retained Earnings" Is Best Explained by Which of the Following

question 81

Multiple Choice

The term "Retained Earnings" is best explained by which of the following statements?

• A) Money set aside for the redemption of bonds payable.
• B) A measure of equity generated by a corporation through its operating activities.
• C) Cash retained in a separate bank account designated for emergency uses.
• D) The difference between total revenue and total expenses in an accounting period.

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Definitions:

Known Risks

Risks that have been identified and analyzed, allowing for planned responses.

External Complexity

Refers to the conditions and variables outside an organization that affect its operations and success.

Internal Complexity

The level of complexity within an organization, determined by its structure, processes, and the interrelations among its components.

Reactive Project Managers

Project managers who primarily respond to issues as they arise rather than proactively planning to avoid potential problems.