Kathleen Battle says, Retained earnings should be reported as an asset, since it is earnings which are

Question:

Kathleen Battle says, “Retained earnings should be reported as an asset, since it is earnings which are reinvested in the business.” How would you respond to Battle?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Intermediate Accounting

ISBN: 978-0470423684

13th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield

See More Books

Question Posted: Dec 11, 2010 02:14 AM

See More Questions

How would you respond to someone who says that the most important item on the statement of cash flows is the change in the cash balance for the year?
How would you respond to the criticism that a proposed IT architecture is not feasible based on todays technology?
How would you respond to a manager who made the following statement? "Unfreezing is not important, employees will follow my directives."
An operations manager wants to examine the effect of air-jet pressure (in pounds per square inch [psi]) on the breaking strength of yam. Three different levels of air-jet pressure are to be...
The following graph contains two aggregate expenditure functions. Consider a movement from point A to point B and a movement from point B to point C. Which movement shows a change in autonomous...
Rehe Company sells its razors at $3 per unit. The company uses a first-in, first-out actual costing system. A fixed manufacturing cost rate is computed at the end of each year by dividing the actual...
The following table shows the selling price of a random sample of residential homes, in thousands of dollars, at three beach communities in New Jersey. The homes are categorized by the real estate...
Selected transactions for Perez Company are presented below in journal form (without explanations). Post the transactions toT-accounts. Debit Credit 3,800 1,600 Date Account Title May 5Accounts...
c) The adjusted trial balance of Brothers' Salon for the year ended December 31, 2020, is as follow: Brothers' Salon Adjusted Trial Balance December 31, 2020 Account Titles Dr. Cr. Account Titles Dr....
PQR Limited is an engineering company engaged in the manufacture of components and finished products. The company is highly mechanized and each of the components and finished products requires the...
Refer to the definition of assets on page 180. Discuss how a leased building might qualify as an asset of the lessee (tenant) under this definition.
The creditors of Chester Company agree to accept promissory notes for the amount of its indebtedness with a proviso that two-thirds of the annual profits must be applied to their liquidation. How...
Verify that the Divergence Theorem is true for the vector field F on the region E. F(x, y, z) = 3x i + xy j + 2xz k, E is the cube bounded by the planes x = 0, x = 1, y = 0, y = 1, z = 0, and z = 1
Question 1 [40 marks] (a) Table 1 present experimental data related to the absorbance of two compounds over a range of concentration, in a UV-Vis cell with path length I = 1.0 cm. From this table:...
i. The following table presents data on wholesale gas prices for the major capital cities in the Eastern-half of Australia, from 2011-12 to 2022-23. Use this data to construct a single, time-series...
Problem 1 Using the same Fourier-Method approach as used in lecture, consider a beam loaded as shown below. 290 -q. Cos 280 x Shane land V-280 Distributed load w = =-80 . Cos[X] a. What are the...
Think about a Floor Warden training program for that company - and write me another email (attached here as a Word document) as if I were the leader of your organization to tell me about the...
A particle travels around the curve shown, following ? = ? 0 . 2 ? ? , ?with ? ( ? ) = 0 . 5 ? 2 rad. At the moment ? = ? , ?determine the speed and acceleration of the particle. ? = , ? ? ? = , ? ?...
Describe the criteria that affect an multinational enterprises decision to adapt the offerings to local markets
The following selected accounts and normal balances existed at year-end. Notice that expenses exceed revenue in this period. Make the four journal entries required to close the books: Accounts...
Solve each problem. What is 53% of 140?
On July 31, 2014, Mexico Company paid $3,000,000 to acquire all of the common stock of Conchita Incorporated, which became a division of Mexico. Conchita reported the following balance sheet at the...
In 2013, Austin Powers Corporation developed a new product that will be marketed in 2014. In connection with the development of this product, the following costs were incurred in 2013: research and...
In 2014, Ghostbusters Corp. spent $420,000 for "goodwill" visits by sales personnel to key customers. The purpose of these visits was to build a solid, friendly relationship for the future and to...
. Emerson Cammack wishes to purchase an annuity contract that will pay him $7,000 a year for the rest of his life. The Philo Life Insurance Company figures that his life expectancy is 20 years, based...
Integrity Inc. can sell 20-year, $1,000 par value bonds paying semi-annual interests with a 10% coupon. The bonds can be sold for $1,050 each; flotation cost of $50 per bond will be incurred in this...
Duncan Inc. issued 500, $1,200, 8%, 25 year bonds on January 1, 2020, at 102. Interest is payable on January 1. Duncan uses straight-line amortization for bond discounts or premiums. INSTRUCTIONS:...

Kathleen Battle says, Retained earnings should be reported as an asset, since it is earnings which are

Question:

Step by Step Answer:

Agazzi is incorrect Retained earnings is a source of assets but ...View the full answer

Intermediate Accounting

Students also viewed these Accounting questions