The Dividends Declared Account Should Be Closed to Retained Earnings

question 148

True/False

The dividends declared account should be closed to retained earnings at year-end.

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Definitions:

Value At Risk

A statistic that measures and quantifies the level of financial risk within a firm or portfolio over a specific time frame.

Compound Return

The rate of return on an investment over a specified period, taking into account the effect of compounding, where the investment's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time.

Geometric Average

A method of calculating the average rate of return of a set of values by multiplying them together and taking the nth root, where n is the number of values.