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A bright line test is used to determine
Common Stock
Represents ownership shares in a corporation, giving shareholders voting rights and a residue claim on corporate earnings in the form of dividends.
Retained Earnings
Profits that a company has earned to date, less any dividends or other distributions paid to investors, which are reinvested in the business.
Net Income
The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenues.
Dividend
A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.
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