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profits More specifically, profits that are not distributed to shareholders as dividends are maintained in the retained earnings section of the equity section of the balance sheet. For tax purposes, since dividends are after tax on the company and then taxed again on receipt by the sghareholder, the company must show a compelling business reason to keep them instead of distributing them. This is generally not too difficult to do.
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What causes retained earnings in a company to decrease?
Retained Earnings is decreased by a loss for the year or dividends paid to stockholders.
What are the possible causes fo retained earnings?
only PROFIT WHICH IS RETAINED IN THE BUSINESS
What causes retained earnings to increase?
Basically, Net income from the year, is one cause, and perhaps a positive adjustment of net income (from say the prior period) to be added to the beginning balance in the Retained Earnings account. Hope that helps.
Is a credit a decrease in assets retained earnings revenue liabilities?
Credit causes the decrease in assets only because assets has debit balance as a normal balance while all other items has credit balance and credit causes the increase in them.
Does an increase in interest payable increase or decrease cash flow?
Increase in interest payable increases the cash flow of company as payment is not cleared when due and which causes temporary increase in company's cash flow
Why are increase in accounts receivable a cash reduction on the flow statement?
Increase in accounts receivable causes the reduction in cash because if sales are made on cash then there is no increase in accounts receivable and company receives cash which causes the increase in cash while accounts receivable not.
The increase in kinetic causes what?
The increase in the kinetic energy causes the increase in velocity.
Do increases in inventory increase or decrease cash flow?
Increase in amount of inventory causes the decrease in cash flow of company as company pays the cash to acquire inventory and hence reduction in cash flow occurs.
Will resistance increase if the voltage in a circuit is increased?
For most metal conductors, the answer is yes... indirectly. An increase in voltage causes an increase in current which, in turn, causes an increase in temperature. An increase in temperature causes an increase in resistivity, which causes an increase in resistance. This is the reason that Ohm's Law doesn't apply to most conductors!
What causes hurricanes to increase in intensity?
Warm water causes hurricanes to increase intensity.
What causes the greatest increase in the motion of molecules in a system?
One thing that causes the greatest increase of motion of molecules is an increase in temperature.
What causes your heart to increase speed when your scared?
In general, an increase of adrenalin causes increased heart rate.
