The Balance in the Retained Earnings Account Is Affected by the Transfer

question 24

Multiple Choice

The balance in the retained earnings account is affected by the transfer to that account of:
I Issued share capital
II Dividends paid or provided for
III Transfers to or from other reserve accounts
IV Changes in accounting policies and errors

• A) II and III only.
• B) I, II and III only.
• C) II, III and IV only.
• D) I, II, III and IV.

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Definitions:

Beta

An indicator of how much a stock's price fluctuates in comparison to the general market.

Treasury Bills

Government-issued securities sold below their nominal value, with maturity periods of no more than a year.

Cost of Equity

is the return that investors expect for investing in a company's equity, reflecting the compensation for the risk undertaken.

Market Value

The ongoing rate at which one can buy or sell a service or asset in an unregulated market.