1.
The statement of retained earnings is also known as the
.
2.
From the date of , the company can legally earn profit.
3.
Profit prior to incorporation cannot be distributed in the form of
.
4.
Profit earned before the issuance of a certificate entitling the company to commence business is shown as a
in the balance sheet.
5.
A dividend is a distribution of a portion of the companys
to shareholders.
6.
An unclaimed dividend is shown as a
in the balance sheet.
7.
Interim dividends enhance the
of the corporation.
8.
When a dividend is declared,
is debited.
9.
The expenses and revenue summary is also known as the
.
10.
When net income is transferred to retained earnings, the expenses and revenue summary is
.
The term Retained Earnings refers to the amount of profit a company has left over after paying all its direct and indirect costs, income taxes, and dividends owed to shareholders. Capital reserve means the part of a companys profits that is set aside for a particular purpose, such as long-term projects or to write off capital expenses. A dividend is a form of distribution of a portion of a company's earnings to its shareholders. Dividends are usually paid in the form of a check, but they may also be paid in additional shares of stock. When a business is incorporated, the owners of that business legally establish themselves and their business as separate entities, by filing Articles of Incorporation paperwork with the appropriate state agencies. A business may incur a liability (borrowed money) in order to purchase new assets that help it operate, such as tools or vehicles. However, too much liability can affect a small business' finances. True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists. True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics. To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.
Financial Statement: Fill In the Blanks FAQs
Financial Statement: Fill In the Blanks
