Question

Net income can either be retained by the company or paid out as dividends.

Answer 1

False; Net income can't either be retained by the company or paid out as dividends. it lists the sum of retained profits after adding the period's net income and subtracting dividends received during that same period.

What means net income?

The amount earned by an individual or business after costs, reimbursements, and taxes is known as net income. Net income in a firm is the amount that is left over after all costs, such as wages and salaries, the cost of goods or raw materials, and taxes, have been paid.

What is meant by retained profits?

Retained profit is the portion of a company's net income that is held internally rather than distributed to shareholders. A company's long-term financial stability can be strongly predicted by its retained earnings.

What do dividend means?

An organization's board of directors decides how much of its profits should be distributed as a dividend to shareholders. Dividends are frequently paid out every three months and can be received in cash or by being reinvested in more shares.

Learn more about retained profits: brainly.com/question/28137128

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