On the Statement of Retained Earnings

question 128

Multiple Choice

On the statement of retained earnings:

• A)a net loss is shown in parentheses as a deduction.
• B)net income decreases retained earnings.
• C)dividends declared increase retained earnings.
• D)dividends paid increase retained earnings.

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Definitions:

Income Tax Expense

represents the cost associated with taxes on a company's income, taking into account both current and deferred tax obligations.

Direct Method

A cash flow statement presentation that lists specific operating cash receipts and payments, straightforwardly showing sources and uses of cash.

Cash Payments

Financial transactions involving the transfer of cash from one party to another, typically as a form of payment for goods, services, or expenses.

Noncash Investing

Investment activities that affect the long-term assets of a company but do not result in cash outlays in the immediate term.