View PoliciesCurrent Attempt in ProgressThe retained earnings statementO will not reflect net loses.O will show an addition to the beginning retained earnings balance for an understatement of net income in a prior year.O will, in some cases, fail to reconcile the beginning and ending retained earnings balances.O is the owners' equity statement for a corporation.eTextbook aid MediaSave for LaterAttempts: 0 of 2 usedSubmit Ans%23%4.8.Weyh

Retained earning means the amount of profit that has not been distributed to shareholder as divided.…

The retained earnings statement will not reflect net losses. will show an addition to the beginning retained earnings balance for an understatement of net income in a prior year. will, in some cases, fail to reconcile the beginning and ending retained earnings balances. O is the owners' equity statement for a corporation.

The retained earnings statement will not reflect net losses. will show an addition to the beginning retained earnings balance for an understatement of net income in a prior year. will, in some cases, fail to reconcile the beginning and ending retained earnings balances. O is the owners' equity statement for a corporation.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

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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Retained earnings is accurately described by all except which of the following statements? A. Retained earnings is the primary component of a companys earned capital. B. Dividends declared are added to retained earnings. C. Net income is added to retained earnings. D. Net losses are accumulated in the retained earnings account.
1. If the board of directors has the authority to declare the dividends within thecurrent fiscal year, the statement of changes in equity would disclose annualdividends as well as interim dividends. Therefore, no other statement is neededto disclose an appropriation of retained earnings through dividends.1) K-IFRS requires the statement of appropriation of retained earnings. Explainwhy. 2) Does the appropriation of retained earnings for, say, R&D change the totalretained earnings? Explain why
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Complete the following tasks: a. Consider the following worksheet with information extracted from a financial statement: 2018 Assets Liabilities Equity Reported ($) 500 000 100 000 400 000 An analyst makes an adjustment that decreases goodwill by $100 000 and equity (profit) by $100 000. This goodwill was acquired on consolidation, hence there are no tax adjustments. Using the worksheet approach, what would be the change in the debt to assets ratio? b. Consider the following information: Net working capital/total assets = 0.9 Retained earnings/total earnings = 0.15 EBIT/total assets = 1.1 MV of equity/BV of total liabilities = 2 Sales/total assets = 2.5 Compute the Z-score. Is there a likelihood of financial distress?
The following are 10 technical accounting terms introduced or emphasized in Chapters 11 and 12:P/e ratio Treasury stock Discontinued operationsStock dividend Extraordinary item Prior period adjustmentBasic earnings per share Additional paid-in capital Diluted earnings per shareComprehensive incomeEach of the following statements may (or may not) describe one of these technical terms. Foreach statement, indicate the term described, or answer “None” if the statement does not correctlydescribe any of the terms.a. A gain or loss that is unusual in nature and not expected to recur in the foreseeable future.b. The asset represented by shares of capital stock that have not yet been issued.c. A distribution of additional shares of stock that reduces retained earnings but causes no changein total stockholders’ equity.d. The amount received when stock is sold in excess of par value.e. An adjustment to the beginning balance of retained earnings to correct an error previouslymade in the…
5. An entity provided the following data for the year ended December 1, 2019: Retained earnings unappreciated, January 1 P2 000 000 Overdepreciation of 2018 due to prior period, net of tax 400 000 Net Income 3 000 000 Retained earnings appreciated for treasury shares (original balance is P500 000 but reduced by P200 000 by reason of reissuance of the treasury shares) Retained earnings appropriated for contingencies (beginning balance P700 000 but increased by current appreciation of P100 000) Cash dividends paid to shareholders Change in accounting policy from FIFO to a average-credit, net of tax • What is the balance of unappreciated retained earnings on December 31, 2019?
Please choose the correct letter of answer Which of the following is not an equity item? a. Retained earnings b. Treasury Shares c. Share Capital d. Unearned revenue The following are excluded as components of a complete set of financial statements, except * a. Environmental reports b. Statement of retained earnings c. Statement of changes in net worth d. Summarized statements of financial position for the last five years
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