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Management · Q369

Financial Management

Graduate and Post Graduate · Management · question 369

Q369

Claim against assets are represented by

A.
saved earning
B.
retained earnings
Answer
C.
maintained earnings
D.
saving account earning

Answer: Option B

Solution

Answer: Option B
Solution:
Claim against assets are represented by retained earnings. Retained earnings are the profits that a company has earned to date, less any dividends or other distributions paid to investors. This amount is adjusted whenever there is an entry to the accounting records that impacts a revenue or expense account.