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    manoj6694's Avatar
    manoj6694 Posts: 1, Reputation: 1
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    #1

    Jan 21, 2009, 09:20 PM
    Retained earnings
    Which of the following statements regarding net income transferred to retained earnings is correct?and why


    Net income = net income transferred to retained earnings - dividends
    Net income transferred to retain earnings = net income + dividends
    Net income = net income transferred to retain earnings + dividends
    Net income transferred to retain earnings - net income = dividends
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Jan 28, 2009, 07:07 PM

    Retained Earnings is a Balance Sheet account.

    Net income is the difference of Revenues & Expenses from the Income Statement and is transferred into the Retained Earnings Account less any dividends paid to shareholders.
    muslimrao's Avatar
    muslimrao Posts: 34, Reputation: 2
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    #3

    Jan 29, 2009, 04:03 AM
    Why u deleted my post??
    muslimrao's Avatar
    muslimrao Posts: 34, Reputation: 2
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    #4

    Jan 29, 2009, 04:06 AM
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