1. Owners Equity is the residual value of the companys assets after deducting its total liabilities from total assets.

True

False

2. Retained Earnings are a part of Owners Equity although they have not been paid (or contributed) by shareholders.

True

False

3. Retained Earnings are the accumulated Net Profit from the operations reinvested back into the company after paying dividends.

True

False

4. The amount of the Retained Earnings is absorbed into the total assets, and has been used by the management because it has been reinvested into the company.

True

False

5. When a company continuously reports net losses from its operations, its retained earnings may become negative.

True

False