Retained earnings represent a company’s:

55) Retained Earnings represent a companys: A) Net income less dividends since the company first began operations, B) Undist


55) The correct option is A
Retained earning represents net income fewer dividends since the company first began the operations.
It is the accumulated income over some time.
56) The company would credit to dividend payable once company declares a dividend.
Here dividend was declared on 15th June hence dividend payable account shall
be credited on 15th June.
Correct option: B
57) Dividend always paid on outstanding shares
therefore the dividend amount would be
=20000 shares *0.60 per share =$12000
Journal entry would be
Debit Credit
Dividends $         12,000
Dividends payable $         12,000
Correct Option: C
58) Earning per share = net income / no of shares outstanding
=$150 million/300 million
=$0.50 per share
Correct Option:A

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