MUHASEBE II
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?
II. Dividends are distributions of cash, other property, or share of the business to the shareholders of a corporation on a pro rata (proportional to ownership) basis.
III. A dividend is a distribution of some portion of earnings to the shareholders by a corporation.
which of the premise(s) about the dividends above is/are correct?
II. Adequate cash,
III. Declared dividends by the board of directors.
Which of the premise(s) above is/are among the conditions that required if a corporation wants to pay cash dividends?
Which of the followings can fill the blank in the sentence above?
II. Record date,
III. Dividend date.
After the decision of paying dividends, there are some dates that are important for a corporation. Which of the above is/are among these important dates?