The Balance in Retained Earnings Is Increased by Net Income

question 69

True/False

The balance in Retained Earnings is increased by net income and is decreased by dividends.

---

Definitions:

Required Return

The minimum yearly interest rate that entices both individuals and companies to invest in a specific security or endeavor.

Share Dividend

A dividend payment made in the form of additional shares rather than a cash payout, often opted by a company to conserve cash.

Start-Up Company

A newly established business, often in the early stage of development, focused on a unique product or service idea.

Desired Rate

The specific rate of return that an investor aims for on an investment.