Closing the Dividends Account to Retained Earnings Is Not Necessary

question 259

True/False

Closing the Dividends account to Retained Earnings is not necessary if net income is greater than dividends paid during the period.

---

Definitions:

Embryonic Germ Layers

The three primary layers of cells (ectoderm, mesoderm, and endoderm) in the embryo from which all tissues and organs develop.

Acrosome

A vesicle at the tip of a sperm cell containing enzymes that help the sperm penetrate the egg.

Umbilical Cord

A flexible cordlike structure containing blood vessels and attaching a human or other mammalian fetus to the placenta during gestation.

DNA

Deoxyribonucleic acid, a self-replicating material which is present in nearly all living organisms as the carrier of genetic information.