Dividends Declared and Paid Reduce a Company's Retained Earnings Balance

question 122

True/False

Dividends declared and paid reduce a company's retained earnings balance.

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Definitions:

Interest Saved

The amount of money that is not paid as interest due to paying off debt earlier or negotiating better rates.

Savings Account

A deposit account held at a financial institution that provides principal security and interest earnings.

Rate of Return

An indicator of the profit or loss on an investment, shown as a percentage of the investment's original value, for a defined timeframe.

Initial Deposit

The first amount of money placed into an account or investment.