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Define how earnings available to common stockholders and common stock dividends paid from the current income statement influence the balance sheet item retained earnings.
The alteration in the retained earnings accounts from one balance sheet to the next equal's net income less preferred stock dividends (that is the amount of earnings obtainable to common stockholders) less common stock dividends.
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discuss the applicability
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Discuss about the Materiality An item can be considered material if its omission would reasonably influence the decisions of an addressee of report, a misstatement is material
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