a company had retained earnings of $40,000 at the beginning of the year, net earnings of $50,000, and a year ending retained earnings of $90,000, it paid its owners a dividend at some point during the year. True or False

a company had retained earnings of $40,000 at the beginning of the year, net earnings of $50,000, and a year ending retained earnings of $90,000, it paid its owners a dividend at some point during the year. True or False

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

If a company had retained earnings of $40,000 at the beginning of the year, net earnings of $50,000, and a year ending retained earnings of $90,000, it paid its owners a dividend at some point during the year. True or False

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

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