Asked by
sloane fischer
on Oct 15, 2024
Verified
Cash dividends reduce Retained Earnings.
Cash Dividends
Payments made by a corporation to its shareholder members. It is the share of profits distributed.
Retained Earnings
The portion of net income left over for the business after it has paid out dividends to its shareholders, often reinvested in the business.
- Comprehend the accounting processes for dividends, encompassing cash dividends and their effect on retained earnings.
Verified Answer
NN
Learning Objectives
- Comprehend the accounting processes for dividends, encompassing cash dividends and their effect on retained earnings.
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