Retained Earnings Quiz

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which of the following factors affects retained earnings the most?

  • Net income or loss (correct)
  • Both net income or loss and dividends paid to shareholders equally
  • Number of employees in the company
  • Dividends paid to shareholders

What happens to retained earnings when a company has a net loss for the period?

  • It is added to the beginning balance of retained earnings
  • It is divided among shareholders
  • It has no effect on the beginning balance of retained earnings
  • It is subtracted from the beginning balance of retained earnings (correct)

How does paying dividends to shareholders affect retained earnings?

  • It increases the number of outstanding shares
  • It adds to the beginning balance of retained earnings
  • It has no effect on the beginning balance of retained earnings
  • It subtracts from the beginning balance of retained earnings (correct)

Question 1

<p>What is the primary factor that affects retained earnings?</p> Signup and view all the answers

Answer 1

<p>Net income or loss</p> Signup and view all the answers

Question 2

<p>What happens to retained earnings when a company pays dividends to shareholders?</p> Signup and view all the answers

Answer 2

<p>The amount of the dividend is subtracted from the beginning balance of retained earnings</p> Signup and view all the answers

Question 3

<p>How does a net loss for the period affect retained earnings?</p> Signup and view all the answers

Answer 3

<p>The amount of the net loss is subtracted from the beginning balance of retained earnings.</p> Signup and view all the answers

Flashcards are hidden until you start studying

More Like This

Use Quizgecko on...
Browser
Open
Browser
Browser