If Retained Earnings Decreased During the Year,and No Dividends Were

question 66

Multiple Choice

If retained earnings decreased during the year,and no dividends were paid,which of the following must be true?

• A)Expenses for the year exceeded revenues
• B)The company did not have enough cash to pay its expenses
• C)Total equity decreased
• D)Liabilities increased during the year

---

Definitions:

Long Run

A period in economics in which all factors of production and costs are variable, and firms can adjust all inputs.

Nuclear Power Plants

Facilities that use nuclear fission to generate electricity, typically by heating water to produce steam that turns turbines.

Average Total Cost Curve

A graph that shows the average total cost of producing different quantities of output, typically U-shaped, reflecting economies and diseconomies of scale.

Average Variable Cost Curve

The Average Variable Cost Curve graphically represents how a firm's variable costs (costs that change with the level of output) per unit of output change as the firm alters its level of production.