If a Corporation Has a Large Balance in Retained Earnings

question 44

True/False

If a corporation has a large balance in retained earnings, it will have enough cash to pay a dividend.

---

Definitions:

Inferred

Something concluded or deduced based on evidence and reasoning rather than explicit statements.

Inventory

The total amount of goods and materials held by a business for the purpose of resale or production.

Contradict

to assert the opposite of a statement made by someone, implying disagreement or denial.

Automates

The process of making an operation or procedure carried out without human intervention through the use of mechanical or electronic devices.