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Luda [366]
1 year ago
14

The balance in retained earnings should be interpreted as representing surplus cash left over for dividends.

Social Studies
1 answer:
Nady [450]1 year ago
7 0

The given statement exits false. The surplus cash left over for dividends should be considered to be part of the balance in retained profits. The balance sheet's stockholders' equity segment shows a shortfall in retained earnings.

<h3>What is meant by retained earnings?</h3>

The amount of profit that remains after a corporation has paid all of its direct costs, indirect costs, income taxes, and dividends to shareholders is known as retained earnings. This is the percentage of the company's equity that may be utilized, for example, to fund the purchase of new machinery, research and development, and marketing.

Dividends are not the main purpose of retained earnings. It is the amount of net income that is still available after dividends have been distributed to shareholders. The available balance of retained earnings serves as the source for dividends. Technically, the unappropriated (free) fraction of the aforementioned retained earnings is used to pay these dividends. The remaining retained profits balance should be understood as extra cash kept on hand for growing corporate operations rather than dividend payments.

The surplus cash left over for dividends should be considered to be part of the balance in retained profits. The balance sheet's stockholders' equity segment shows a shortfall in retained earnings. A company may be set up as a nonprofit organization or with the intention of producing a profit.

To learn more about retained earnings refer to:

brainly.com/question/25998979

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<h3>Interaction-constructionist perspective</h3>
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4 0
1 year ago
How were Eastern/ Southern Europeans treated in the United States during World War Two? How were Japanese Americans treated in T
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3 years ago
On January 1863, President Lincoln declared that all slaves in the Confederacy “shall be then, thenceforward, and forever free.”
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you got the answer?........

6 0
3 years ago
Read 2 more answers
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lianna [129]

Answer:

1 In the 8th century BC, Greece began to emerge from the Dark Ages which followed the collapse of Mycenaean civilization.The civilization of Ancient Greece emerged into the light of world history in the 8th century BC. Normally it is regarded as coming to an end when Greece fell to the Romans, in 146 BC. However, major Greek (or “Hellenistic”, as modern scholars call them) kingdoms lasted longer than this.

2. Cyclades. Ionian. Dodecanese.

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Explanation:

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