If a Corporation Had Net Income of $60,000 and $20,000

question 162

True/False

If a corporation had net income of $60,000 and $20,000 in cash dividends were declared and paid then the retained earnings account would increase by $40,000.

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Definitions:

Government Expenditures

Refers to the financial spending by a government, including the funding of public services, infrastructure, and social programs.

Receipts

Documents acknowledging that a transaction has taken place and that a payment has been made or received.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, illustrating how much tax will be paid on an additional dollar of income.

Monetary Policies

Economic strategies, implemented by a central bank, that regulate the amount of money in circulation to control inflation, employment, and economic growth.