Asked by Kevin Chaffins on Jun 05, 2024
Verified
Retained earnings:
A) Generally consists of a company's cumulative net income less any net losses and dividends declared since its inception.
B) Can only be appropriated by setting aside a cash fund.
C) Represent an amount of cash available to pay shareholders.
D) Are never adjusted for anything other than net income or dividends.
E) Represents the amount shareholders are guaranteed to receive upon company liquidation.
Retained Earnings
The portion of a company’s profits that is kept or retained and not paid out as dividends to shareholders, often used for reinvestment.
Cumulative Net Income
The total amount of net income earned by a company over a specified period, typically since its inception.
Dividends Declared
The announcement by a company's board of directors of the issuance of dividends to shareholders.
- Calculate and interpret the ending balance in retained earnings given beginning balances, net income, and dividends.
Verified Answer
Learning Objectives
- Calculate and interpret the ending balance in retained earnings given beginning balances, net income, and dividends.
Related questions
The Ending Balance in the PP&E (Net)account Will Be Closest ...
A Company's Retained Earnings Balance Increased $50,000 Last Year;therefore,net Income ...
Total Assets Are $37,500,total Liabilities Are $20,000 and Common Stock ...
The Adjusted Trial Balance of Tahoe Company at the End ...
Johnson Corporation Is Completing the Accounting Information Processing Cycle at ...