The account Retained Earnings is:the amount paid as dividend.a subdivision of paid-in capital.net profit accumulated by the corporation.reported as an expense in the income statement. Which of the following statement is true?Common stockholders get preference in terms of dividend receipt.The company is under no legal obligation to pay dividend to the common stockholders every year.Board of directors take everyday's operating decision for the company.As owners, preferred stockholders can elect board of directors.

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The account Retained Earnings is: the amount paid as dividend. a subdivision of paid-in capital. net profit accumulated by the corporation. reported as an expense in the income statement.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The account Retained Earnings is:
the amount paid as dividend.
a subdivision of paid-in capital.
net profit accumulated by the corporation.
reported as an expense in the income statement.

Which of the following statement is true?
Common stockholders get preference in terms of dividend receipt.
The company is under no legal obligation to pay dividend to the common stockholders every year.
Board of directors take everyday's operating decision for the company.
As owners, preferred stockholders can elect board of directors.

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