What is retained earnings? What transactions and economic events have an effect on retained earnings? Why is

Question:

What is retained earnings? What transactions and economic events have an effect on retained earnings? Why is retained earnings considered an indirect investment in an entity?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Accounting A Critical Approach

ISBN: 978-1259066528

4th edition

Authors: John Friedlan

See More Books

Question Posted: Feb 26, 2015 11:53 AM

See More Questions

Indicate if each of the following transactions and economic events would appear in the cash flow statement. If it does appear in the cash flow statement, would it be reported as cash from operations,...
Indicate whether each of the following transactions and economic events will increase, decrease, or have no effect have on the current ratio, quick ratio, accounts receivable turnover ratio, and the...
Indicate whether each of the following transactions and economic events will increase, decrease, or have no effect on the current ratio, quick ratio, accounts receivable turnover ratio, and the...
Cindy purchased a building for $1,000,000. How should she deal with the expense on her tax return? a) She must deduct the $1,000,000 in the year of purchase. b) She must not deduct anything and wait...
What are retail markdowns? How can the expected level of markdown reductions be used to calculate a products initial gross margin?
Recall that the cigarette industry requires that models in cigarette ads must appear to be at least 25 years old. Also recall that a sample of 50 people is randomly selected at a shopping mall. Each...
What is the difference between object-oriented languages and UML?
Suppose Ramirez Ltd. Just issued a dividend of $1.89 per share on its common stock. The company paid dividends of $1.47, $1.62, $1.67, and $1.78 per share in the last four years. If the stock...
Find the derivative of the given function. y = (x + 3)3
Cooley Textile's 2001 financial statements are shown below. Cooley Textile: Income Statement for December 31, 2001 (Thousands of Dollars) Sales........................................................
Distinguish between stock splits and stock dividends. How is each accounted for? What is the economic significance of each?
What is accumulated other comprehensive income (AOCI)? Where does it appear in the balance sheet? What causes it to change in a period?
When Yuji died in March 2018, his gross estate was valued at $15 million. He owed debts tota ling $300,000. Funeral and administration expenses were $12,000 and $120,000, respectively. The marginal...
Which statement best explains why the SEC has concerns about the independence of an audit firm partner who is compensated when she sells nonaudit services to her audit client? O The partner may lose...
Accounting: type question:, Debit is equal to credit - A . Sometimes true in accounting B . Sometimes false in accounting C . Always true in accounting D . True in special conditions
In your role as Group Accountant, you have been asked to draft a new procedure over the financial statements consolidation process, involving several subsidiaries who are part of the organisations...
43. HB Inc. purchased supplies with cash for $1,000 in January. Which account would increase with a debit? O A. Accounts payable B. Supplies expense O C. Cash D. Supplies
Name 2 types of financial statement fraud ( any 2 ) and please describe how this fraud affects the outcomes of the impacted financial statements in which the fraud occurred within? For example:...
For each of the following question, circle the answer that best describes you. When it comes to beliefs, you a. Do all you can to make others see things the same way you do b. Actively advance your...
Chapter 9 Stock Valuation at Ragan Engines Input area: Shares owned by each sibling Ragan EPS Dividend to each sibling Ragan ROE Ragan required return Blue Ribband Motors Corp. Bon Voyage Marine,...
An ammeter that has internal resistance $R_{\mathrm{am}}=0.504 \Omega$ is designed to measure a maximum current of $I_{\max }=$ $100 \mathrm{~mA}$. You want to use this ammeter to measure the...
Use the accounting equation to answer each of the following questions. (a) The liabilities of Alli Company are $90,000. Common stock account is $150,000; dividends are $40,000; revenues, $450,000;...
In alphabetical order below are balance sheet items for Grande Company at December 31, 2014. Kit Grande is the owner of Grande Company. Prepare a balance sheet, following the format of Illustration...
Transactions made by Callahan and Co., a law firm, for the month of March are shown below. Prepare a tabular analysis which shows the effects of these transactions on the accounting equation, similar...
1) Explain how a Preschool program can help to bring a sense of belonging for the child? 2) It is important for a program to provide physical environments that are age-appropriate and that support...
Your company decided to organize a special dinner to appreciate all the employees and it has been proposed that the dinner to be held in the middle of December 2021. You have been appointed as the...
Select a two-dimensional image to analyze that is either a work of art (photograph, illustration, or painting) or an advertisement. What is the FTC analysis?Use the FTC palette to break down the...

What is retained earnings? What transactions and economic events have an effect on retained earnings? Why is

Question:

Step by Step Answer:

Retained earnings is the sum of the earnings of the entity sin...View the full answer

Financial Accounting A Critical Approach

Students also viewed these Accounting questions