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.
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Answer:
spatial study of natural phenomena that make up the environment, such as rivers, mountains, landforms, weather, climate, soils, plants, and any other physical aspects of the earth’s surface. Physical geography focuses on geography as a form of earth science.
Explanation:
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True because for someone to do ‘something’ there’s a reason/purpose behind whey they’re doing it in the first place
When capital adequacy line is equal to the savings per worker function then "normal expected returns to investor".
<h3>What is
capital adequacy/requirement ratio?</h3>
The capital adequacy ratio (CAR) gauges a bank's level of capital retention in relation to its level of risk. The CAR of banks must be monitored by national regulators in order to ascertain how well it can withstand an acceptable amount of loss.
The components of capital adequacy are-
- The Capital Adequacy Ratio (CAR) aims to ensure that banks have an adequate amount of capital to safeguard depositors' funds.
- (Tier 1 Capital + Tier 2 Capital) / Risk-Weighted Assets is the calculation for CAR.
- The BIS's capital standards have tightened up in recent years.
- By reducing the likelihood of bank insolvency, capital adequacy ratios promote the effectiveness and stability of a country's financial system.
- A bank with a high capital adequacy ratio is typically thought to be secure and likely to fulfill its financial obligations.
The principle of capital adequacy are-
- High-quality and loss-absorbing capital are both necessary.
- The Basel III criteria for common stock, along with supplementary tier 1 and tier 2 capital, are applied to establish the quality of capital, with retained earnings being the most important factor.
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