If a Firm Retains Earnings, Total Equity Increases

question 73

True/False

If a firm retains earnings, total equity increases.

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Definitions:

Functional Currency

The primary currency of the primary economic environment in which an entity operates, used in its financial reporting.

Dividends

Payments made by a corporation to its shareholder members, distributing a portion of the company’s earnings.

Exchange Rates

The rate at which one currency can be exchanged for another currency, used in global transactions and currency conversion.

Capital Assets (Net)

The total value of an organization's capital assets minus any accumulated depreciation.