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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The northern hemisphere is called the land hemisphere because the greater part of the earth landmass lies in the northern hemisphere
The Southern Hemisphere is called the water hemisphere because it is made up of most of the seas like Pacific Ocean and the Indian Ocean
Because having multiple people introduce the same bill or law is no necessary it takes the mind set of both the house and senate and plus they have many rules within both chambers of congress therefore they have to follow the rules that each member of that chamber voted on to put into place and they also have to follow the state and governmental laws as well
Answer:
The correct answer is:
C. Partnerships is a reporting entity but not a taxable entity.
Explanation:
Individuals are reporting entities and taxable entities, so a is incorrect. A partnership is not a taxable entity, but partnerships are reporting entities. Because partnerships report their accountant numbers but don't pay direct taxes. However, the individuals in that partnership declare their income and are taxed on their individual earnings. Corporations have to report and get taxed over their income. So the correct option is C.
