Statement of Retained Earnings

When an entity settles the dividend payable, it shall recognize the difference between the carrying amount of the asset distributed and the carrying amount of the dividend payable in

• Profit or loss

• Other comprehensive income

• Equity

• Retained earnings

Cash dividends are paid on the basis of the number of shares

• authorized

• issued

• outstanding

• Outstanding less the number of treasury shares

Treasury shares may be reissued as dividends, in which case what amount shall be charged to retained earnings?

• cost of the treasury shares

• par value of the treasury shares

• fair value of the treasury shares on the date of declaration

• answer not given

On the Statement of Cash Flows, cash received from a bank loan is which type of activity?

• Operating activity
• Investing activity
• Financing activity

Amounts contributed to a company by investors/owners are know as:

• liabilities.
• dividends.
• retained earnings.
• stockholders' equity.

The overall objective of the auditor in a financial statements audit is to have an opinion on whether the financial statements are prepared, in all material respects, in accordance with the criteria.

• True

• False

Results of compliance audits are typically reported to someone within the organizational unit being audited rather than to a broad spectrum of outside users.

• True

• False

Many small companies elect to have their financial statements reviewed by a CPA firm, rather than incur the cost of an audit.

• True

• False

earnings maintained by the company for financial growth

• Income Statement

• Retained Earning

• Balance Sheet

• Journal

statement outlining the changes in retained earnings for a certain period

• Income Statement

• Statement of Retained Earning

• Balance Sheet

• Journal