QUESTION 21 What occurs to stockholders' equity when a company incurs a net loss for the current period? O a. Paid-in capital is reduced with a debit amount. O b. Total retained earnings becomes restricted and dividends may not be distributed. OC. A deficit is reported for retained earnings on the balance sheet. d. Total retained earnings is reduced. QUESTION 22 What does the price-earnings ratio indicate? Oa. The percentage of earnings distributed to shareholders O b. The net income earned on each share of stock outstanding OC. The net income generated out of each sales dollar Od. Investors' assessments of a company's future earnings