Retained Earnings
Trending Questions
Explain the merits and demerits of retained earnings.
What is the main objective of every business ?
‘Ploughing back of profits’ is also known as ______________________.
Buying debentures
Issuing preference shares
Retaining earnings
Issuing equity shares
‘Promoter enjoys a fiduciary position with the company.' Explain.
"Profit play an important role in the business". Give any four reasons to justify the statement.
What preferential rights are enjoyed by preference shareholders?
Discuss the various types of preference shares.
Is purchase return an asset?
What are the two important sources from where the owner's funds can be obtained?
None of the above
Retained earnings and debentures
Retained earnings and issue of equity shares
Retained earnings and issue of preference shares
Retained earnings is a temporary source of funds available to an organization.
True
False
State the limitations of retained earnings.
Which of the following has the highest cost of capital?
Equity shares
Loans
Bonds
Preference shares
Why is the owners equity credit?
Retained earnings are called self-financing.
False
True
"As a source of finance retained earnings is better than other sources". Do you agree ? Give reasons for your answer.
Retained earnings are
an indication of a company's liquidity
the same as cash in the bank
not important when determining dividends
the cumulative earnings of the company after dividends
Define shares. Mention any two advantages of it.
Is equity an asset?
Discuss the merits and demerits of retained earnings as a source of business finance.
What are the 2 types of equity?
What preferential right are enjoyed by preference shareholders? Explain.
How do equity owners get paid?
Retained earnings are an economical, self-financed and permanent source of capital for a company, but at times creates dissatisfaction among shareholders and may result in overcapitalisation. Identify the values reflected in this statement.
What preferences are available to preference shareholder ?
Is equity good or bad?
How to calculate equity share capital?
Mention any two sources of owner's funds or ownership capital/ long-term finance.
What is equity share and preference share?
Retained earnings enhance the capacity of the business to absorb unexpected losses.
False
True
What do you mean by unlimited liablitity in case of sole proprietors ?
