 In this presentation, we will take a look at multiple choice questions related to corporations. First question, income earned per share is A, dividends, B, earnings per share, C, amount owed to owners, D, shareholder payable, E, book value per share. So we'll go through this again using the process of elimination to narrow this down. Income earned per share, A, dividends. So income earned per share. Now you might think it's dividends because I mean if we got income from the corporation then you would think that they would pay that to the owners like with a dividend. So maybe it will keep dividend for now. And then B says earnings per share, which kind of sounds reasonable since it says income earned per share, earnings per share. Sounds kind of reasonable. I'll keep that for now. I like the term. I don't know what it is. It sounds like the right thing. C says amount owned owed to the owners. Income earned per share. I mean the whole income is owed to the owners in a way, but it doesn't sound quite termed right to me. So I'm going to cross that out. D says shareholder payable and again we might say it sounds that's similar to C amount owed to the owners or a shareholder payable, but that sounds like a liability and a shareholder payable. If it's owed to the owner we would typically think that would be some kind of equity maybe. And so that doesn't really sound like a thing to me. It sounds like a made up thing. So I'm going to cross that out. I don't think that's it. E says book value per share and again it doesn't really sound income earned per share, book value per share. It doesn't quite sound right. I'm going to cross that out and leave it with A or B. Go through this again. Income earned per share is either A or B, either dividends or earnings per share. And income earned per share sounds most like B. B sounds just like the same kind of term, earnings per share, income per share. So I'm going to say it's B. Dividends is not it because although earnings per share is basically taking our kind of net income and dividing it by the owners, shareholders, shares, it doesn't necessarily mean that the company is going to pay the dividends, which could be a common misconception. If we think that we can calculate the earnings per share and think we're going to get paid the earnings per share, not necessarily the case because the corporation could then keep the earnings per share in order to generate more revenue in the future. So final answer, income earned per share B, earnings per share. Next question, retained earnings, A, accumulation of earnings less dividends for the life of the corporation, B, represents total equity for a corporation, C, represents the owner initial investment for a corporation, D does not change over time, or E does goes up when dividends are declared. So we'll go through this again using the process of elimination to narrow down the options. Retained earnings, A, accumulation of earnings less dividends for the life of the corporation. That sounds pretty close. Retained earnings is going to be the earnings less what's been given out in dividends. I'm going to keep that for now. B says represents total equity for the corporation. It's in the equity section, so I might keep that. I'll keep that for now. C says represents the owner initial investment for the corporation. That doesn't sound right. I mean, it represents the initial investment because that's what about common stock, right? The common stock is the initial investment. So note that B and C might cancel each other out and we might say, B says represents total equity for the corporation, meaning assets minus liabilities is total equity represented by one number of retained earnings. And then C says represents the owner initial investment for the corporation, which would indicate that there's more than one component to the equity section. So maybe we can eliminate those two. They both don't sound quite right. So I'm going to say that both of those don't sound right. We'll eliminate those. D says does not change over time. That doesn't sound right. Retained earnings is, you know, most accounts change over time. So I don't think that's going to be. And then E says goes up when dividends are declared. And you know, it does something when dividends happen, right? So we'll keep that for now. So we'll go through this again. Retained earnings is either A or E, either accumulation of earnings less dividends for the life of the corporation or E goes up when dividends are declared. So of those two, we can think of this and say, hmm, you know, dividend retained earnings does kind of represent the earnings of the corporation. And it would, something would happen to it if dividends were going out of the corporation, but it would go down, you would think, right? Because it's the earnings of the corporation. And then if we give a dividend, it would go down. So it's not E and we're left with basically A here. Also A is going to be the longest answer. And oftentimes if you see a long detailed kind of answer that's hedging all of its bets, being very lawyer like in order to say exactly what is correct, not missing anything, then that might be more likely the answer than other types of answers. And this is the most correct answer to note that there may be other, there could be it like a, there could be something like a stock dividend or something that may affect retained earnings. But anyways, A looks like the most correct answer. So we'll go to this last final answer. Retained earnings. A, accumulation of earnings less dividends for the life of the corporation. Next question, changes in retained earnings are showing on A, statement of cash flows, B, balance sheet, C, statement of stockholders equity, D, income statements or E, statement of owners equity. We'll go through this again using the process of elimination, narrowing this down. Changes in retained earnings are shown on A, statement of cash flows. That doesn't sound right. That's going to be the cash flow statement, B, the balance sheet. Now the balance sheet does have retained earnings on it, balance sheet has assets, liabilities and the equity section. But usually the equity section is kind of like condensed and just shows the end result, not really the change there. So I'm going to say now C says statement of stockholders equity, which sounds kind of reasonable. You would think that if there was a change to be shown, it would be on something called the statement of stockholders equity. So I'll keep that, D says income statement. And that's going to show a change, but it's going to show the change in net income. That's kind of part of the change for stockholders, the change in retained earnings. But it's not the only component because there could be dividends as well. So that's really not showing the beginning and ending format, it just shows one component that will be included in the change. And then E says statement of owner's equity. And you know, the owners are the stockholders. So that might sound reasonable. I'll keep that for now. Go through this again. Changes in retained earnings are showing on either A or E, either statement of stockholders equity or statement of owner's equity. And of those two, the stockholders equity sounds more correct because the owner's equity is what we would call it if it was a sole proprietor owned by the owner. But this time they're stockholders. So we'll call it stockholders equity, same type of idea, same concept in terms of a statement referring to the beginning, the change, ending, value, and equity. Name changes based on type of entity. Final answer, changes in retained earnings are showing on C, statement of stockholders equity.