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nika2105 [10]
3 years ago
15

The additional paid-in capital account represents profit to the corporation and, as such, it is credited to Retained Earnings.

Business
1 answer:
Tom [10]3 years ago
8 0

Answer:

B. False

Explanation:

The retained earnings show distributions available out of profit to the company shareholders after all other obligations to third parties are satisfied.

Hence, additional paid-in capital account would not necessarily form part of Retained Earnings but is included as an increase in the equity account.

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