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Which of the following statements is CORRECT? a. If a firm reports a loss on its income statement, then the retained earnings account as shown
Which of the following statements is CORRECT?
| a. | If a firm reports a loss on its income statement, then the retained earnings account as shown on the balance sheet will be negative. | |
| b. | The retained earnings account as shown on the balance sheet shows the amount of cash that is available for paying dividends. | |
| c. | Since depreciation is a source of funds, the more depreciation a company has, the larger its retained earnings will be, other things held constant. | |
| d. | A firm can show a large amount of retained earnings on its balance sheet yet need to borrow cash to make required payments. | |
| e. | Common equity includes common stock and retained earnings, less accumulated depreciation. |
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
