Question: Question 2 2 pts How do retained earnings differ from common and preferred equity in terms of their source? It is a type of liability,
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pts
How do retained earnings differ from common and preferred equity in terms of their source?
It is a type of liability, not equity.
It comes from accumulated profits, not from issuing stock.
It comes from issuing stock, not from accumulated profits.
It represents shortterm earnings only.
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