tibryanna
Answered

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Dividends declared is subtracted from the Statement of Retained Earnings. True or False.

Sagot :

Samawati

Answer:

True

Explanation:

Retained earnings are profits that management opts not to distribute to shareholders. They are profits invested back in the business. The statement of retained earnings is the financial statement that records the retained earnings.

Calculation of retained earnings is by deducting dividends from the net profits. In the statement of retained earnings, net profits are added to the beginning balance of retained earnings and subtracting dividends declared.

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