Indicate Whether Each of the Following Statements About Retained Earnings

question 35

Short Answer

Indicate whether each of the following statements about retained earnings is true or false.
_______ a)A dividend paid to stockholders decreases retained earnings.
_______ b)Issuing common stock for cash increases retained earnings.
_______ c)The amount of net income for a period must equal retained earnings.
_______ d)The purchase of a truck decreases retained earnings.
_______ e)The amount of net income for a period increases retained earnings.

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Definitions:

Water Cycle

The continuous movement of water on, above, and below the surface of the Earth, involving processes such as evaporation, condensation, precipitation, and runoff.

Equatorial Air

A type of warm, moist air found near the Earth's equator, contributing to the climate and weather patterns of equatorial regions.

Moisture

The presence of a liquid, especially water, often in trace amounts.

Rain Shadow

A dry area on the leeward side of a mountainous area, where precipitation is significantly less than on the windward side.