The account Retained Earnings is:the amount paid as dividend.a subdivision of paid-in capital.net profit accumulated by the corporation.reported as an expense in the income statement. Which of the following statement is true?Common stockholders get preference in terms of dividend receipt.The company is under no legal obligation to pay dividend to the common stockholders every year.Board of directors take everyday's operating decision for the company.As owners, preferred stockholders can elect board of directors.

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The account Retained Earnings is: the amount paid as dividend. a subdivision of paid-in capital. net profit accumulated by the corporation. reported as an expense in the income statement.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter1: The Demand For And Supply Of Financial Accounting Information

Section: Chapter Questions

Problem 19GI

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Question

The account Retained Earnings is:
the amount paid as dividend.
a subdivision of paid-in capital.
net profit accumulated by the corporation.
reported as an expense in the income statement.

Which of the following statement is true?
Common stockholders get preference in terms of dividend receipt.
The company is under no legal obligation to pay dividend to the common stockholders every year.
Board of directors take everyday's operating decision for the company.
As owners, preferred stockholders can elect board of directors.

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