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Advanced topic: The value of the harmonic mean
Dividends Account
An account in the ledger that records dividends paid out to shareholders by a company.
Retained Earnings Account
An equity account that represents the accumulated portion of net income not distributed to shareholders in the form of dividends.
Current Ratio
A financial liquidity metric that compares a company's current assets to its current liabilities, used to evaluate its ability to pay short-term obligations.
Temporary Accounts
Accounts that track revenues and expenses within a specific accounting period and are reset to zero at the period’s end.
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