Which of the following is true of retained earnings?
A) Retained earnings decrease with payment of dividends.
B) Retained earnings increase with purchase of assets.
C) Retained earnings decrease with collection of revenue.
D) Retained earnings increase with payment on account.
A
You might also like to view...
Tosho Electronics, a leading Japanese, electronic manufacturer believes shorter product life cycles of new products reduce the scope for R&D and innovation. Offer a possible reason for shorter life cycles
What will be an ideal response?
Rashid purchased real estate known as Parcel A, subject to a preexisting mortgage, in favor of Local National Bank. Leila purchased real estate known as Parcel B, assuming a preexisting mortgage on it in favor of Local National Bank. After each purchase took place, there were defaults on the debts that gave rise to the mortgages. Although Local National Bank instituted and completed foreclosure proceedings with regard to each of the two mortgages, it did not yield enough funds to pay off the debt in full. Therefore, Local National Bank made demands on Rashid and Leila for payment of the deficiency owed on Parcel A and on Parcel B, respectively. Explain if Local National Bank is entitled to receive the deficiencies it seeks from Rashid and Leila.
What will be an ideal response?
A local ski resort leases their facilities for concerts during the summer months. This is an example of?
a. Cross-training employees b. Overbooking c. Self-service d. Capacity sharing
Mobile Minutes Company offers Nate an unlimited number of monthly phone minutes for $4.50 per month. Nate ac¬cepts. If a dispute arises, a court would likely
a. enforce the deal after questioning the adequacy of the consideration. b. not question the adequacy of the consideration. c. rewrite the deal after questioning the adequacy of the consideration. d. set aside the deal after questioning the adequacy of the consideration.