The Retained Earnings account: a. is a special fund for paying shareholders' dividends on the basis of income. b. has a credit balance if earnings have been greater than losses and dividends, and is reported as part of shareholders' equity on the statement of financial position. c. has a debit balance if losses have exceeded earnings, and is reported as part of assets on the statement of financial position. d. represents the amount of cash available for payment of dividends if there has been profitable operations.
The Retained Earnings account: a. is a special fund for paying shareholders' dividends on the basis of income. b. has a credit balance if earnings have been greater than losses and dividends, and is reported as part of shareholders' equity on the statement of financial position. c. has a debit balance if losses have exceeded earnings, and is reported as part of assets on the statement of financial position. d. represents the amount of cash available for payment of dividends if there has been profitable operations.
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 16MC: Retained earnings is accurately described by all except which of the following statements? A....
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The
a. is a special fund for paying shareholders' dividends on the basis of income.
b. has a credit balance if earnings have been greater than losses and dividends, and is reported as part of shareholders' equity on the
c. has a debit balance if losses have exceeded earnings, and is reported as part of assets on the statement of financial position.
d. represents the amount of cash available for payment of dividends if there has been profitable operations.
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