Explain the Role of Procedures and Provide an Example of a Procedure

question 26

Essay

Explain the role of procedures and provide an example of a procedure.

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Definitions:

Retained Earnings

The portion of a company's profits not distributed to shareholders as dividends but retained for reinvestment in the business or to pay debt.

Net Income

The net income of a company following the subtraction of all costs and taxes from the gross revenue.

Cash Dividend

A cash dividend is a payment made by a company out of its profits to shareholders in the form of cash.

Annual Financial Statements

Reports that give an overview of a company's financial condition for a specific fiscal year, including income statements, balance sheets, and cash flow statements.