The Retained Earnings Account on the Balance Sheet Does Not

question 58

True/False

The retained earnings account on the balance sheet does not represent cash.Rather,it represents part of the stockholders' claims against the firm's existing assets.Put another way retained earnings are stockholders' reinvested earnings.

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Definitions:

Active Listening

A communication technique where the listener fully concentrates, understands, responds, and then remembers what is being said.

Interviewing

The process of asking questions and obtaining answers from people, often used in research, journalism, or employment selection.

Lecture Presentation

A formal talk or speech given to an audience or class, often involving educational or informative content and visual aids.

Acknowledges

Acknowledges refers to the act of recognizing or admitting the existence, truth, or fact of something.