The Retained Earnings Account Equals All Previous Periods' Net Earnings

question 43

True/False

The retained earnings account equals all previous periods' net earnings plus any dividends declared less prior losses.

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Definitions:

Check Register

A record maintained by the account holder of checks written, deposits made, and current balance, used for managing a checking account.

Writing Checks

The process of completing and signing a check as a means of making a payment from a bank account.

Additional Checks

Extra verification processes or controls implemented to ensure accuracy, compliance, or security.

Deposit

Money placed in a bank account or to secure a purchase until the transaction is completed.