MUHASEBE II - Deneme Sınavı - 5
II. Retained Earnings represents the amount earned through profitable operations of a corporation and that is kept in the corporation,
III. Retained earnings account’s credit balance indicates that the corporation’s lifetime earnings exceed lifetime losses and dividends.
Which of the premises above is/are correct?
operations of corporations
II. They are not distributed to the shareholders in the form of dividend.
II. They are internally generated equity because it results from corporate decisions to retain net income to be used in future operations or for expansion.
Which of the premises about retained earnings above are correct?
II. To close all the revenue accounts, they should be debited while Income Summary account is credited with the total amount of the revenues.
III. Contrarily, to close all the expense accounts they should be credited while the Income Summary account is debited with the total amount of the expenses.
IV. In the end, the financial result of the corporation (net income or net loss) for a specific accounting period could be seen on the balance of the Income Summary account.
Which of the premise(s) about the closing process occurs at the end of the accounting period above is/are correct?