Dividends paid to stockholders decrease retained earnings

Assignment Help Financial Accounting

Reference no: EM131264228

Indicate whether each of the following statements about equity is true or false.

1. Operating expenses reported on the income statement increase retained earnings.

2. Common stock is a part of contributed or paid-in capital for a corporation

3. Retained earnings is increased by loans received from a bank

4. Dividends paid to stockholders decrease retained earnings

5. Owner's equity is the residual interest in the company resulting from the difference between assets and liabilities.

Reference no: EM131264228

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