The Study of Accounting Is Not Useful for a Business

question 61

True/False

The study of accounting is not useful for a business career unless your career objective is to become an accountant.

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Definitions:

Nontaxable Return of Capital

A payment received from an investment that is not taxed because it is considered a portion of the original investment's cost being returned to the investor.

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders.

Earnings and Profits

A measure of a corporation’s ability to pay dividends to shareholders, not necessarily equal to net income.

Dependent Care Assistance Plans

Benefit plans offered by employers that allow employees to use pre-tax dollars to pay for dependent care expenses.