View PoliciesCurrent Attempt in ProgressThe retained earnings statementO will not reflect net loses.O will show an addition to the beginning retained earnings balance for an understatement of net income in a prior year.O will, in some cases, fail to reconcile the beginning and ending retained earnings balances.O is the owners' equity statement for a corporation.eTextbook aid MediaSave for LaterAttempts: 0 of 2 usedSubmit Ans%23%4.8.Weyh

Retained earning means the amount of profit that has not been distributed to shareholder as divided.…

The retained earnings statement will not reflect net losses. will show an addition to the beginning retained earnings balance for an understatement of net income in a prior year. will, in some cases, fail to reconcile the beginning and ending retained earnings balances. O is the owners' equity statement for a corporation.

The retained earnings statement will not reflect net losses. will show an addition to the beginning retained earnings balance for an understatement of net income in a prior year. will, in some cases, fail to reconcile the beginning and ending retained earnings balances. O is the owners' equity statement for a corporation.

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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A company has a history of losses and has a negative balance (a debit) in retained earnings. On the balance sheet, what should this account be called? Group of answer choices Retained earnings, with amount shown as a negative Accumulated deficit, with amount shown as a negative Negative retained earnings, with amount shown as a negative
Indicate whether the following statement is true or false. At the end of the financial year, the gross profit/loss is not transferred to the trading account. Select one: True False
Which of the following results in a decrease in the investment account when applying the equity method? Purchase of additional common stock by the investor during the current year. Dividends paid by the investor. Share of gross profit on intra-entity inventory sales for the current year. Net income of the investee. Net income of the investor.
Which of the following is true regarding temporary accounts? Select all that apply All temporary accounts are first transferred to the income summary and then closed to retained earnings. Temporary accounts are only used when a company is in the middle of issuing common stock Temporary accounts include revenues, expenses, dividends and the income summary Dividends are a temporary account that is closed directly to retained earnings, while revenues and expenses are temporary accounts that are first transferred to the income summary and then closed to retained earnings. Temporary accounts include cash, accounts payable and retained earnings Temporary accounts include revenues but do not include expenses
If a business makes a gross profit during a financial or trading year ( select appropriate answer) A) There is no need to produce a trading account for that business B) It does not necessarily follow that a net profit will also be made during the financial or trading year. C) Its owners will be able to take drawings or earn dividends D) It follows that a net profit will also be made during that financial or trading year
1. Define comprehensive income. What are the ways companies can present comprehensive income? 2. How are discontinued operations reported in the income statement? 3. Explain the difference(s) between investments in equity securities classified as current assets versus those classified as long-term (noncurrent) assets? 4. A summary of the company's significant accounting policies is a required disclosure. Why is this disclosure important to external financial statement users? 5. Deferred revenues represent liabilities recorded when cash is received from customers in advance of providing a good or service. What adjusting journal entry is required at the end of a period to recognize the amount of deferred revenues that were recognized during the period?
A company fails to record accrued wages for the current year. Which of the following statement is true? O Retained earnings for the current year is overstated. O Net income for the current year is correct. O Retained earnings for the current year is understated. O Net income for the current year is understated.
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
Please help with the following question, need accurate and full answer. What is the effect on liabilities, stockholder’s equity, revenues and net income if a company does not make an unearned revenue adjusting entry? Explain with suitable examples
A statement of retained earnings is used to explaind the change in the amount of retained earnings between two successive balance sheet dates. True ir false?
A restriction on retained earningsa. Reduces retained earnings available for the declaration of dividends. b. Can be reported by an entry appropriating retained earnings. c. Has no effect on total retained earnings. d. All of the choices are correct.
The primary purpose of showing special types of eventsseparately in the income statement is to:a. Increase earnings per share.b. Assist users of the income statement in evaluating theprofitability of normal, ongoing operations. c. Minimize the income taxes paid on the results of ongo-ing operations. d. Prevent unusual losses from recurring.