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3 years ago

The purpose of a statement of retained earnings is to: __________.

Business

1 answer:

marusya05 [52]3 years ago

4 0

Answer:

To determine the closing balance of retained earnings

Explanation:

First and foremost, retained earnings are an important part of the shareholders' equity. In a bid to ascertain the correct position of total shareholders' equity at year-end, it is important that a statement of retained earnings reconciling the opening retained with net income and dividends declared during the year is prepared.

The balance at the end of the year is the total accumulated earnings which have not been distributed to shareholders as dividends or which may be used to finance projects that increase shareholders' wealth

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HELP PLEASE 20 points :)

den301095 [7]

O think is c, but I think I’m not sure

8 0

3 years ago

Read 2 more answers

City Auto Parts recently traded in store fixtures. The exchange had commercial substance. The old fixtures had a cost of $48,000

IRISSAK [1]

Answer:

The correct option is true

Explanation:

The book value of the old fixtures at the date of exchange which is the cost less accumulated depreciation till date is computed thus:

Book value of old fixtures=$48,000-$14,000=$34000

Expected cash payable by the company for the new fixtures is the market value of the new fixtures minus the carrying value of the old fixtures.

Expected cash=$117,000-$34,000=$83,000.00

Loss on the exchange =cash paid -expected cash payable=$101,000-$83,000=$18000

5 0

3 years ago

In a sales mix situation at any level of units sold net income will be higher if

ArbitrLikvidat [17]

In a sales mix condition at any level of units vended the net income will be higher if more higher contribution margin units are sold than lower contribution margin units. The sales mix is the comparative proportion in which a company vends its multiple goods. In addition, the contribution margin ratio is contribution margin separated by sales.

7 0

3 years ago

When originally purchased, a vehicle costing $25,740 had an estimated useful life of 8 years and an estimated salvage value of $

Rudiy27

Answer:

Annual depreciation= $5,660

Explanation:

Giving the following information:

Purchase price= $25,740

Salvage value= $3,100

First, we need to calculate the accumulated depreciation before the change in useful life:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (25,740 - 3,100) / 8

Annual depreciation= $2,830

Accumulated depreciation= 2,830*4= $11,320

Now, we can calculate the new depreciation expense:

Annual depreciation= (25,740 - 11,320 - 3,100) / 2

Annual depreciation= $5,660

4 0

3 years ago

Which of the following forms of business organizations does not have the pass-through feature of income and losses? a. partnersh

Sauron [17]

Answer:

c. corporation

Explanation:

A corporation is a type of business ownership that recognizes a business as a separate entity from its owners. Legally, a corporation is an independent person with commercial rights like any other person. A corporation is entitled to de business, incur debts, acquires assets, and make profits.

A corporation is expected to file its income tax returns at the end of every financial year. The owners of a corporation or its shareholders are also expected to file their separate income tax returns. An element of double taxation arises the business is taxed, and the owners are also taxed separately. In the other form of business ownership, the business incomes pass as owner's income resulting in single taxation.

3 0

3 years ago