Which of the Following Correctly Describes Retained Earnings

question 52

Multiple Choice

Which of the following correctly describes retained earnings?

• A)It is the cumulative earnings of a company.
• B)It represents the investments by stockholders in a company.
• C)It equals total assets minus total liabilities.
• D)It is the cumulative earnings of a company less dividends declareD.Retained earnings are the cumulative earnings not distributed to the owners.That is the cumulative net income less dividends declared.

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Definitions:

Project Management Skills

Essential abilities required to successfully plan, execute, monitor, control, and close projects, including time management, communication, leadership, and risk management.

Technical Expertise

The specialized knowledge or skills in a particular field or area of study.

Cross-Functional Project Teams

Teams composed of members with different expertise and from various departments, collaborating towards a common goal.

Idea Generation

The process of creating, developing, and communicating new concepts or approaches, often as part of problem-solving or innovation.