Retained earnings:Multiple ChoiceIs the cumulative net income (and loss) not distributed as dividends to its stockholders.Can only be appropriated by setting aside a cash fund.Represent an amount of cash available to pay shareholders.Are never adjusted for anything other than net income or dividends.Represents the amount shareholders are guaranteed to receive upon company liquidation.

Retained earnings represent the net income that a company has generated over time, minus its…

Answered: Retained earnings: Multiple Choice Is…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter5: Income Statement: Reporting The Results Of Operating Activities

Section: Chapter Questions

Problem 4Q

See similar textbooks

Similar questions

Retained earnings not paid out to shareholders in the form of dividends are: Select one: a. Re-invested in the company b. Confiscated by the government c. Sold on the secondary market d. Paid as executive bonuses
Which of the statements are not true Select one: a. Financial Structure is part of Capital Structure b. None of the statements c. Interest is an expense from a view point of tax d. Capitalisation is the total amount of long term funds raised by a company e. There is no commitment of payment of dividend for equity shareholders
Which of the following regarding retained earnings is false?a. Retained earnings is increased by net income.b. Retained earnings is a component of stockholders’equity on the balance sheet.c. Retained earnings is an asset on the balance sheet.d. Retained earnings represents earnings not distributed tostockholders in the form of dividends
A Moving to another question will save this response. Question 10 to The retained earnings: O A. Never get adjusted for anything other than net income or dividends. O B. Is the amount shareholders are guaranteed to receive in company liquidation. O C. Represent an amount of cash available to pay shareholders. O D. Generally consists of a company's cumulative net income less any net losses and dividends declared since its inception. A Moving to another question will save this response. ASUS CD WE
:Retained earnings Equal total stockholders' equity less treasury stock at the end of the period A .Refer to the amount shareholders are guaranteed to receive during company liquidation .B .Equal comulative net income less any net losses and dividends declared.C .Represent the amount of cash available to pay shareholders.D
A gain or loss from one of the following transactions should not be included in determining income: a. receipt of interest from bank depositsb. sale of treasury sharesc. sale of plant and equipmentd. sale of product T Corporation’s retirement of its treasury shares resulted in the par value exceeding the cost. The difference should be: a. debited to APIC to the extent of the credit when the stock was issuedb. debited to retained earningsc. credited to APIC from previous treasury stock transactionsd. credited to APIC relating to the same issue Which of the following should be reported for capital stock? a. the shares authorizedb. the shares issuedc. the shares outstandingd. all of these
Appropriating retained earnings will Multiple Choice cause an increase in stockholders' equity. cause a decrease in stockholders' equity. have no effect on total stockholders' equity. cause an increase in the dividends payable account.
Retained earnings refers to Group of answer choices Cash and other assets The amount of net income retained in the corporation Common stock that the firm can distribute as dividends None of the other choices are correct.
Choose the incorrect statement below: A. Retained earnings are the funds contributed by shareholders in excess of par or stated value.B. Equity is defined as the residual interest in the assets of an entity after deducting all of the liabilities.C. Conversion of preference shares into ordinary shares directly affects retained earnings.D. The statement of changes in equity is a formal statement that shows the movements in the elements or components of the shareholders' equity.
Which of the following is true of a stock dividend? A. It is a liability. B. The decision to issue a stock dividend resides with shareholders. C. It does not affect total equity but transfers amounts between equity components. D. It creates a cash reserve for shareholders.
The declaration of the dividends by a company has no effect on the retained income of the company, true or false?
Cash dividends, property dividends, and scrip dividends are examples of dividends that Select one: O a. have no effect on total shareholders' equity but decrease retained earnings and increase contributed capital O b. have no effect on any element of shareholders' equity O c. decrease total shareholders' equity by decreasing retained earnings O d. decrease total shareholders' equity by decreasing contributed capital

SEE MORE QUESTIONS

Recommended textbooks for you

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS