Appropriating retained earnings reduces the amount of retained earnings that are available for the declaration of dividends. This statement is

Retained earnings are a component of:

Retained earnings represent: Group of answer choices the shareholders’ claim on total assets. the amount of cash held by the business. the total of revenue for the period. the amount of profit held in the company for future use.

It refers to the amount of accumulated profits and gains realized out of the normal and continuous operations of the corporation after deducting therefrom distributions to stockholders and transfers to capital stock or other accounts, and which is not appropriated for definite corporate expansion projects or programs, not covered by a restriction for dividend declaration under a loan agreement, and not required to be retained under special circumstances obtaining in the corporation, such as when there is a need for a special reserve for probable contingencies.Group of answer choicesStock dividendsBonded indebtednessCash dividendsUnrestricted retained earnings

The declaration of cash dividends reduces retained earnings.Group startsTrue or False

If retained earnings increases from the beginning of the year to the end of the year, then: a. profit is greater than dividends paid. b. additional investments are greater than profit. c. dividends paid are greater than profit. d. additional investments are less than losses.