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Which of the Following Statements Is Not Correct

Question 45

Multiple Choice

Which of the following statements is not correct?


A) Retained earnings represents a cash fund.
B) A corporation can have a large cash balance but no retained earnings.
C) A corporation can have a balance in the Retained Earnings account but no cash.
D) Retained earnings represent the undistributed profits and losses of the corporation.

Correct Answer:

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