If the Dividends Account Is Not Recorded as a Reduction

question 97

True/False

If the dividends account is not recorded as a reduction to Retained Earnings on the date of declaration, the dividends account is closed to Retained Earnings at the end of the accounting period.

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Definitions:

Aptitude

A natural ability to do something or to learn something.

Personality Test

A questionnaire or other standardized instrument designed to reveal aspects of an individual's character or psychological makeup.

Self-Esteem

An individual's subjective evaluation of their own worth or value.

Critical Thinking Skills

The ability to analyze information objectively and make a reasoned judgment, involving the evaluation of sources, identification of assumptions, and assessment of conclusions.