In the context of owners' equity, which of the following is true of retained earnings?
A. They refer to a firm's additional profits that are used for paying executive salary.
B. They are accumulated earnings reinvested in a company rather than being paid to the owners.
C. They are a firm's earnings that are kept aside for crisis management situations.
D. They refer to salaries that are withheld in case an employee is involved in fraudulent activities.
Answer: B
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Demanding domestic consumers tend to push firms to move ahead of companies in other countries where consumers are less demanding and more complacent.
Answer the following statement true (T) or false (F)
What is an appendix, and what specific types of items does it usually contain?
Mom's Apple Pies (MAP) earned $500,000 this year. The company follows the residual dividend policy when paying dividends. MAP has determined that it needs a total of $600,000 for investment in capital budgeting projects this year. If the company's debt/asset ratio is 40 percent, what will its dividend payout ratio be this year? MAP has no preferred stock.
A. 40% B. 28% C. 72% D. 48% E. 52%
The copying of a genuine item without authorization, especially when passed off as the original item is:
a. economic espionage b. fraud c. racketeering d. insider trading e. none of the other choices