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Can retained earnings be used for cash flow purposes?
yes retained earnings can be used to get more capital for business to smooth out the cash flow problems.
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.
Is it possible to withdraw from a retained earnings account to finance company investments like capital assets?
Prime reason for maintenance of Retained earnings is to support business in times of problems, so retained earnings are mostly used by companies to purchase capital assets and even if there is no external source of finance available in that case retained earnings are also used
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
Can retained earnings be used for cash flow purposes?
yes retained earnings can be used to get more capital for business to smooth out the cash flow problems.
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.
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 it possible to withdraw from a retained earnings account to finance company investments like capital assets?
Prime reason for maintenance of Retained earnings is to support business in times of problems, so retained earnings are mostly used by companies to purchase capital assets and even if there is no external source of finance available in that case retained earnings are also used
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.
What is the normal balance of retained earnings?
normal balance of retained earnings: credit.
Formulla for retained earnings?
retained earnings=profit after tax- dividend distribution
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.
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.
How is retained earnings calculated?
1. If dividend paid: Retained Earnings = Net profit - dividend if dividend not paid: Retained earnings = Net profit
