1 Retained earnings

a Represent an amount of cash available to pay shareholders

b Are part of the income statement

c Are the cumulative net profits or losses minus dividends paid since the date of incorporation

d All of these

e Are the cumulative net profits or losses minus dividends paid since the date of incorporation and are part of shareholders' equity

2 If we buy the shares from a current shareholder the result will be ................. of/for/etc the total capital of the partnership.

a depends of the amount

b decrease

c same

d increase

3 In a partnership, if investment is more than the share of the equity, this is a situation of ...

a depends of the amount invested

b bonus to new partner

c none of them

d bonus to old partners