Answered: Retained earnings refers to Group of…

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: A company uses its paid-in capital (in addition to retained earnings) to pay dividends. A company…

Q: What is the capital called that is contributed to the corporation by the stockholders and others?…

A: Stockholders are the owners, who invest in the company in the form of cash or kind. They can be…

Q: The net effect to a corporation of the declaration and payment of a cash dividend is to: a. increase…

A: Cash dividend means the dividend paid to the company's stockholders in the form of cash. This can be…

Q: What does the retained earnings account measure? a) Cash held by the company since its inception.…

A: Retained earnings are defined as the part of earnings that are retained by the company. These…

Q: All of the following terms can be used for a corporation to describe the difference between assets…

A: The balance sheet represents the financial position of the business with assets, liabilities and…

Q: Tony, age 15, is claimed as a dependent by his grandmother. During 2016, Tony had interest income…

A: Given: Interest income = $ 1,000 Earnings from part-time job = $ 850

Q: Retained earnings refer to the portion of a corporation's profits that are paid out to shareholders.…

A: B. false Retained earnings are not paid to shareholders. Generally dividend paid to shareholders ,…

Q: Which of the following is true of retained earnings? Retained Earnings is decreased by net income.…

A: Retained earnings are the profits that are attributable to equity shareholders accumulated over a…

Q: The term deficit is used to refer to a debit balance in which of the following accounts of a…

A: Deficit in accounting refers to occur when the expenses incurred during the year are more than the…

Q: provide a financial analysis of a publicly-traded corporation including an explenation of the key…

A: Select a publicly traded corporation you want to analyze and gather financial information like its…

Q: I. Multiple Choice 1. A major disadvantage of a corporation is... a. Additional taxes b. Limited…

A: Hi Student, Since there are multiple questions, we will answer only first question. If you want…

Q: Ski West, Incorporated, operates a downhill ski area near Lake Tahoe, California. An all-day adult…

A: As per dual concept of accounting, every transaction has dual impact on the books of accounts.The…

Q: In which two ways is corporate profits tax similar to the payments to common shareholders (owners)…

A: Shareholders are entitled to share in the company's profits. A corporate tax, also called…

Q: If a company uses the equity method to account for an investment in another company, which of the…

A: The equity method is used when a company has ownership in another company of 20% to 50% of the…

Q: True or False? Retained Earnings represents the amount that stockholders have invested in the…

A: Introduction: Retained Earnings: Ending retained Earnings value to be shown in Balance sheet.

Q: Which financial statement is provided by virtually all corporations worldwide? A. Statement of Cash…

A: 1. Correct Answer: C. Balance Sheet Explanation: The most significant financial statement of any…

Q: Ans

A: Financial Statements Financial statements are formal records of the financial activities and…

Q: What is the company's dividend policy

A: Dividend is some portion of company’s profit that the shareholders get for investing their money in…

Q: why the company logo is an asset? what does mean by retained earning (when it is not distributed as…

A: Logos are intangible assets of a company. Intangible assets provide value to a company because they…

Q: he primary purpose of the Balance Sheet is to reflect: a. Firm’s potential for growth in stock…

A: Solution: The primary purpose of the Balance Sheet is to reflect " Firm’s resources and how they…

Q: Dividends are (Select all that apply.) required amounts owed to shareholders reported on the Income…

A: The dividend is considered as a part of the distributable profit distributed by the company to its…

Q: 1. Which of the following would appear first in a statement of retained earnings? Choices; Cash…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Question

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.

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction:-

VIEW

Step 2: Explanation:-

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

What is stock-based compensation? O Capital expenditure Non-cash operating expense paid to employees in the place of cash O Non-cash liability that sits on the balance sheet O Cash operating expense paid to employees
In a limited company which of the following is shown in the statement of changes in equity? a. Loan note interest and dividends b. Dividends paid and transfer to reserves c. Transfer to reserves and loan note interest d. Directors remuneration and Dividends paid
Which one of the following normally has a net debit balance? A. Contributed capital that is in shareholders’ equity. B. Retained earnings that is in shareholders’ equity. C. Dividends that decrease retained earnings Revenues that increase retained earnings. D. Revenues that increase retained earnings
When using the equity method of accounting, when is revenue recorded on the books of the investor company?a. When the fair value of the affiliate stock increases.b. When a dividend is received from the affiliate.c. When the affiliate company reports net income.d. Both b and c above.
Question 1 Which of the following would NOT be included as equity in a corporate balance sheet? Retained earnings Paid in capital Cash Ordinary shares
Net income reported by a company has what impact on retained earnings and total stockholders equity
Which of the following is not an input in a company's WACC? O Long-term debt. Preferred stock Retained earnings Accounts payable
Which of the following is true about dividends: Group of answer choices Increasing dividends can impact retained earnings. Dividends must always be paid if the company makes profit. Dividends are split equally between stockholders and bondholders. Dividends paid reduce the net income that is reported on a company's income statement.
Preventing Job Withdrawal Preventing highly valuable employees from leaving is an important strategy that cannot be ignored. It is not only the cost of losing these employees but also the loss of essential knowledge and the effect on company morale. Organizations can mitigate voluntary turnover by recognizing signs of a progression of withdrawal and taking actions to retain these individuals. Employees may show signs of job withdrawal through behavior change, physical job withdrawal, and psychological job withdrawal. In this exercise, please read the following mini-case and answer the question that follows. Work had become so burdensome for Michelle that she dreaded having to show up every day. Michelle was recruited from a competitor of the company, and during her first month she excelled in her performance. Her managers and co-workers at first welcomed her and were quite friendly. They had however become somewhat complacent in their jobs and began to be a bit jealous of…
Owner’s equity represents which of the following? a. the total of retained earnings plus paid-in capital b. the sum of the retained earnings and accounts receivable account balances c. the business owner’s/owners’ share of the company, also known as net worth or net assets d. the amount of funding the company has from issuing bonds
Determine whether it is common stock, preferred stock, or bonds that has the feature best related to the following considerations. a. Ownership and control of the firm b. Obligation to provide return c. Claims to assets in bankruptcy d. High cost of distribution e. Highest return f. Highest risk g. Tax-deductible payment h. Payment partially tax-exemptto corporate recipient
Under the accrual method of accounting, how are dividends paid to stockholders treated? O Dividends decrease retained earnings and are considered an expense O Dividends are considered a distribution of retained earnings but do not affect net income O Dividends increase stockholders' equity as they represent a return on investment O Dividends paid are recorded as an investment activity in the statement of cash flows O None of the above