0
Add your answer:
Earn +20 pts
Is unappropriated retained earnings credit?
Yes, since this account (Retained Earnings) is a credit account and an uppropriate retained earnings account is simply a non-restricted account which is Retained Earnings !!! Even the restricted/ appropriate retained earnings are credited.
What are the reasons for not using retained earnings when starting a new business?
A new business has no retained earnings. Retained earnings are prior years earnings that have not been distributed to the shareholders... if it is a brand new business there is no possible way to have retained earnings at inception date.
Is retained earnings a current liability?
Retained Earnings is a Non-Current Liability
How is retained earnings calculated?
1. If dividend paid: Retained Earnings = Net profit - dividend if dividend not paid: Retained earnings = Net profit
Is retained earnings an asset?
No, retained earnings comes after Net Income on the Income Statement. The retained earnings is less than the Net Income if a dividend is paid out.
Is unappropriated retained earnings credit?
Yes, since this account (Retained Earnings) is a credit account and an uppropriate retained earnings account is simply a non-restricted account which is Retained Earnings !!! Even the restricted/ appropriate retained earnings are credited.
Does Retained Earnings restricted for building expansion go on a Classified Balance Sheet?
Yes retained earnings that are restricted for building expansion are placed on the classified balance sheet. Retained earnings are not considered assets.
What is the entry when releasing a net asset from temporarily restricted?
Release restricted funds by creating a journal entry which is a credit to the restriction account and a debit to retained earnings
Which financial statement summarizes the changes in retained earnings?
Stetement of retained earnings summarizes the changes occured in retained earnings from opening balance to closing balance.
Is there a restriction on what you can do with retained earnings?
Yes, I think there are some restrictions as to its use. Retained earnings are the accumulated profits/ income that arose from the operation of the business. It's use is sometimes restricted when considering some accounting principles. Mostly, the timing of recording, limit of charging based on the transaction and accounting measures, and qualification of the transactions for Retained earnings to be affected.
What are the reasons for not using retained earnings when starting a new business?
A new business has no retained earnings. Retained earnings are prior years earnings that have not been distributed to the shareholders... if it is a brand new business there is no possible way to have retained earnings at inception date.
Is retained earnings a current liability?
Retained Earnings is a Non-Current Liability
Is retained earnings a liability?
NO, the retained earnings would be in the equity part of the equation.
Formulla for retained earnings?
retained earnings=profit after tax- dividend distribution
What is the normal balance of retained earnings?
normal balance of retained earnings: credit.
Are dividends paid out of the current year's profits or from retained earnings?
From retained earnings.
What is a closed revenue and expense account to retained earnings called?
When you close the accounts, it totals into retained earnings, so in turn, it is essentially retained earnings.
