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Cornerstones of Financial Accounti...
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Cornerstones of Financial Accounti...
30. How may a corporation’s retained earnings be restricted?
Concept introduction:
Financial statements:
Financial statements are prepared to summaries the account at the end of the period. The statements prepared are Income statement, Balance sheet, Statement of owner’s equity and Cash flows statements.
Balance Sheet:
The Balance sheet is a summary of Assets, Liabilities and equity accounts that reports the financial position of the business as on a specific date. Assets are further classifies into Current Assets, Long Term Investments, Plant Assets and Intangible assets. And Liabilities are further classified into Current Liabilities and Long term liabilities.
Income Statement:
Income Statement is the part of the financial statement which is prepared to calculate the net income earned by the organization. In the income statement, all expenses are subtracted from the revenues to calculate the net income. It is prepared for a particular period.
To explain:
How may the Retained earnings be restricted.
Retained earnings are the cumulative balance of the earnings of this and previous years which are not distributed...
Chapter 10 Solutions
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