While reviewing a companys balance sheet, John observed the Retained Earnings account with a balance of $850,000.

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While reviewing a company’s balance sheet, John observed the Retained Earnings account with a balance of $850,000. “Wow,” he thought. “That’s a lot of cash!” Has John correctly interpreted the company’s financial information? Explain.

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Financial Accounting Information For Decisions

ISBN: 978-0324672701

6th Edition

Authors: Robert w Ingram, Thomas L Albright

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Question Posted: Jun 22, 2012 12:55 AM

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While reviewing a companys balance sheet, John observed the Retained Earnings account with a balance of $850,000.

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No Retained Earnings represents earnings kept in the b...View the full answer

Financial Accounting Information For Decisions

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