True/False Retained earnings are excluded in the financing activity since they were already counted within the...

Question

Question

True/False Retained earnings are excluded in the financing activity since they were already counted within the...

True/False

Retained earnings are excluded in the financing activity since they were already counted within the firm’s net income.

business finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Answer: True

Retained earnings is the income which is not distributed to shareholders. Accumulation of net income after deducting dividend indicates retained earnings. Since net income is already a part of operating activity, there must not be further consideration of retained earnings in financing activity.

Add a comment

Answer 2

Similar Homework Help Questions

The purchase of equipment is an example of financing activity. True False and explain

The purchase of equipment is an example of financing activity. True False and explain
Which one of the following equations represents the Statement of Retained Earnings activity?

Which one of the following equations represents the Statement of Retained Earnings activity?a. Beginning retained earnings + cash inflows - cash outfiows = ending retained earningsb. Beginning retained earnings + dividends - net income = ending retained earningsc. Beginning retained earnings + net income - dividends = ending retained earningsd. Beginning retained earnings + net income + dividends = ending retained earnings
if beginning retained earnings were $28,000, dividends were $25,000, and ending retained earnings was $12,000, how...

if beginning retained earnings were $28,000, dividends were $25,000, and ending retained earnings was $12,000, how much was net income?

True or False 14. Dividends paid to common shares have no impact on the calculation of...

True or False 14. Dividends paid to common shares have no impact on the calculation of earnings per share. True or False 15. Earnings per share indicates the net income earned for each share of common and preferred stock. True or False 16. A company can be earning net income, but still have a negative cash flow. True or False 17. Issuance of common stock is classified as an investing activity on the Cash Flow Statement. True or False 18....
True or False?-Corporations 1 Shareholders' equity for a corporation consists of contributedcapital and retained earnings. 1...

True or False?-Corporations 1 Shareholders' equity for a corporation consists of contributedcapital and retained earnings. 1 2 - The owner of a corporation is called a director. 3 - The payment of business profits to the owners of a corporate business'is known as drawings. I 4 A dividend is a distribution of retained earnings. I 5 6 7 8 The shareholders provide all of the financing for a corporation +One of the advantages of investing in preferred shares is that...
A corporation's Retained Earnings generally consists of a company's cumulative net income less any net losses...

A corporation's Retained Earnings generally consists of a company's cumulative net income less any net losses less dividends declared. Some corporations that have been operating for decades, like IBM, have had an ongoing balance in their Retained Earnings account since the company started business in the early 1900's... A. True B. False

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

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

TRUE or False - Revenues have a direct relationship with retained earnings. - Company A paid...

TRUE or False - Revenues have a direct relationship with retained earnings. - Company A paid off $500 it owed Company C in period 1. In the same period, Company A collected $500 that was owed by Company D. Assuming these were the only transactions in period 1, owners’ equity will be REDUCED by $500 at the end of period 1.

True/False Retained earnings are excluded in the financing activity since they were already counted within the...

Homework Answers

Add Answer to:
True/False Retained earnings are excluded in the financing activity since they were already counted within the...

Post as a guest

Earn Coins

The purchase of equipment is an example of financing activity. True False and explain

Which one of the following equations represents the Statement of Retained Earnings activity?

if beginning retained earnings were $28,000, dividends were $25,000, and ending retained earnings was $12,000, how...

True or False 14. Dividends paid to common shares have no impact on the calculation of...

True or False?-Corporations 1 Shareholders' equity for a corporation consists of contributedcapital and retained earnings. 1...

A corporation's Retained Earnings generally consists of a company's cumulative net income less any net losses...

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

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

TRUE or False - Revenues have a direct relationship with retained earnings. - Company A paid...

True/False Retained earnings are excluded in the financing activity since they were already counted within the...

Homework Answers

Add Answer to: True/False Retained earnings are excluded in the financing activity since they were already counted within the...

Post as a guest

Earn Coins

Add Answer to:
True/False Retained earnings are excluded in the financing activity since they were already counted within the...