Multiple Choice
All of the following are true of retained earnings except:
A) They are the difference between paid-in capital and the total dividends paid.
B) They represent the amount of new capital shareholders have indirectly contributed.
C) They are equal to the cumulative earnings less dividends.
D) They are the amount of earnings plowed back into the firm.
Correct Answer:
Verified
Correct Answer:
Verified
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