Net Earnings Are Calculated by Taking a Company's Earnings Less

question 53

True/False

Net earnings are calculated by taking a company's earnings less their dividends paid out.

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Definitions:

Journal Entries

The method by which financial transactions are recorded in an accounting system, typically involving a debit to one or more accounts and a credit to another in equal amounts.

Shares Outstanding

The total number of shares of a corporation's stock that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Par Value

A nominal value assigned to a share of stock in the charter of a corporation, which is the minimum legal capital per share.

Common Share

A unit of equity ownership in a corporation, granting holders voting rights and a share in the profits through dividends.