3) Retained earnings will be increased by the amount in the dividend account (2pts True False

Question

Question

Answer 1

Answer #1

False

Retained earnings is the profit accumulated by the corporation. When the dividends are paid, the retained earnings balance decreases.

Comment if you face any issues

Answer 2

Similar Homework Help Questions

True or False: During the closing process, retained earnings is closed to the dividends account.

True or False: During the closing process, retained earnings is closed to the dividends account.
during the closing process retained earnings is closed to the dividends account true or false

during the closing process retained earnings is closed to the dividends account true or false
1) All of the following statements about retained earnings are true except a.retained earnings are increased...

1) All of the following statements about retained earnings are true except a.retained earnings are increased when a company has net income. b.retained earnings are sometimes referred to as "earnings retained for use in the business." c.retained earnings represent surplus cash. d.retained earnings are decreased when a company declares a dividend. 2) Which of the following statements is true concerning stock splits? a.The total number of shares outstanding does not change after the stock split. b.Stock splits require journal entries...

T or F: Retained Earnings – The beginning account balance is increased for Net Income and...

T or F: Retained Earnings – The beginning account balance is increased for Net Income and decreased for payment of dividends to arrive at the ending balance for the accounting period. (If false, identify and correct the error.)
The balance in the Dividends account is closed to the Retained Earnings account by debiting the...

The balance in the Dividends account is closed to the Retained Earnings account by debiting the Retained Earnings account and crediting the Dividends account. True False
4. The cost of retained earnings True or False: It is free for a company to...

4. The cost of retained earnings True or False: It is free for a company to raise money through retained earnings, because retained earnings represent money that is left over after dividends are paid out to shareholders. False True The current risk-free rate of return is 4.60% and the current market risk premium is 5.70%. Green Caterpillar Garden Supplies Inc. has a beta of 1.56. Using the Capital Asset Pricing Model (CAPM) approach, Green Caterpillar's cost of equity is Cute...

True or false: A company cannot pay dividends in excess of the amount of its retained...

True or false: A company cannot pay dividends in excess of the amount of its retained earnings. Click the answer you think is right. True False Read about this Do you know the answer? Unse No idea lenow it Think so
4. The cost of retained earnings True or False: It is free for a company to...

4. The cost of retained earnings True or False: It is free for a company to raise money through retained earnings, because retained earnings represent money that is left over after dividends are paid out to shareholders. False O True The cost of equity using the CAPM approach The current risk-free rate of return (rRF) is 4.67% while the market risk premium is 6.17%. The D'Amico Company has a beta of 0.92. Using the capital asset pricing model (CAPM) approach,...
True or False: It is free for a company to raise money through retained earnings, because...

True or False: It is free for a company to raise money through retained earnings, because retained earnings represent money that is left over after dividends are paid out to shareholders. O False True The cost of equity using the CAPM approach The current risk-free rate of return (rf) is 4.23%, while the market risk premium is 6.63%. the Roosevelt Company has a beta of 0.78. Using the Capital Asset Pricing Model (CAPM) approach, Roosevelt's cost of equity is The...

If dividend payout ratio is increased to 100%, what happens to retained earnings? A firm has...

If dividend payout ratio is increased to 100%, what happens to retained earnings? A firm has a debt 10Mm They are loan ophm) Th first' ortinn ís闷Syr 104n @ 8% fle+ ra due at the end of the Ss a lanu0 nce and tuis ottim ist yu io A 13 13/ Fowth yur Fifth y