TRUE OR FALSE

1. Retained Earnings , also known as Accumulated profits underIFRS,represents accumulated profits or loss, including prior period adjustments less the dividends declared and other amounts transferred to the contributed accounts.
2. A debit balance in retained earnings (deficit) would arise if accumulated losses and distributions exceed the accumulated earnings.
3. Dividends are distribution of corporate income to its shareholders on a pro-rata basis.
4. Dividends are distributed out of accumulated earnings of the corporation including liquidating dividends
5. Liquidating dividend represents a return to the shareholders of their investment.