Asked by
Donald Santamaria
on Nov 18, 2024
Verified
A large retained earnings account means that there is cash available to pay dividends.
Retained Earnings
Profits that a company keeps or reinvests rather than distributing to shareholders as dividends.
Cash Available
The total amount of cash or liquid funds a company or individual has accessible for immediate use.
- Assess the implications of retained earnings magnitude on dividend payments.
Verified Answer
PS
Learning Objectives
- Assess the implications of retained earnings magnitude on dividend payments.