Indicate Whether Each of the Following Statements About Retained Earnings

question 61

True/False

Indicate whether each of the following statements about retained earnings is true or false.a)A dividend paid to stockholders decreases retained earnings.b)Issuing common stock for cash increases retained earnings.c)The amount of net income for a period must equal retained earnings.d)The purchase of a truck decreases retained earnings.e)Net income increases retained earnings.

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Definitions:

Selective Incentives

Benefits or rewards provided by groups to entice members to join and remain active within the organization, often used within the context of political or social groups.

American Association of Retired People

A large, United States-based non-profit organization focused on issues affecting those over the age of fifty, including health care, employment security, and retirement planning.

Super PACs

Unrestricted in the amount of money they can collect from corporations, unions, and individuals, these independent political committees are, however, forbidden from directly coordinating activities with political parties or candidates.

Issue Advocacy

Political activity aimed at influencing public opinion or policy on specific issues, without expressly supporting or opposing any candidate.