[seattleacct]

Is it safe to assume that any difference between the increase/decrease in retained earnings +/- the net income amount, is always Dividends?

For example:

Year 1 R/E: $165k, Year 2 R/E: $280k and Year 2 Net Income: $200k,

The retained earnings increased by $115k, and Net income is $200k. $115k – 200k = (85K) difference to account for. This 85k represents dividends that were declared. Is the difference always going to be dividends or can it be something else?

B:76
A:64, 73, 91!
R:77
F:76

CPAexcel, Wiley Test Bank, Ninja Audio & Notes

[ColoradoCPA]

The other item that I can think about is “Appropriated RE”. To show that assets in the amount of appropriation are not available for dividends.

Dr RE

Cr Appropriated RE

FAR 81 ✓
AUD 97 ✓
BEC 75 ✓
REG 84 ✓

[ColoradoCPA]

The other item that I can think about is “Appropriated RE”. To show that assets in the amount of appropriation are not available for dividends.

Dr RE

Cr Appropriated RE

FAR 81 ✓
AUD 97 ✓
BEC 75 ✓
REG 84 ✓

[seattleacct]

Great, thanks!

B:76
A:64, 73, 91!
R:77
F:76

CPAexcel, Wiley Test Bank, Ninja Audio & Notes

[seattleacct]

Great, thanks!

B:76
A:64, 73, 91!
R:77
F:76

CPAexcel, Wiley Test Bank, Ninja Audio & Notes

[Vienna]

There are a couple of other transactions that hit Retained Earnings but are not related to dividends:

Quasi-reorganziations

Treasury stock – par value method (if buy back is above issuance price and insufficient APIC)

For the exam, I would assume that the difference is usually dividends paid unless any of the above transactions is specifically mentioned.

[Vienna]

There are a couple of other transactions that hit Retained Earnings but are not related to dividends:

Quasi-reorganziations

Treasury stock – par value method (if buy back is above issuance price and insufficient APIC)

For the exam, I would assume that the difference is usually dividends paid unless any of the above transactions is specifically mentioned.

[Study Monk]

Beginning retained earnings is also affected by changes in accounting principles and accounting errors from prior periods. Changes in beginning retained earnings will create a change in ending retained earnings. Vienna mentioned the other big adjustments.

I spoke to an ancient wise man who sent me on a mushroom induced journey through an ancient forest to find the key to passing the CPA exam. A talking spider monkey told me to throw the last of my drinking water in the dirt to find what I was looking for. So I followed his instructions and the following message appeared in the soil:

"Do 5000 multiple choice questions for each section"

[Study Monk]

Beginning retained earnings is also affected by changes in accounting principles and accounting errors from prior periods. Changes in beginning retained earnings will create a change in ending retained earnings. Vienna mentioned the other big adjustments.

I spoke to an ancient wise man who sent me on a mushroom induced journey through an ancient forest to find the key to passing the CPA exam. A talking spider monkey told me to throw the last of my drinking water in the dirt to find what I was looking for. So I followed his instructions and the following message appeared in the soil:

"Do 5000 multiple choice questions for each section"

[kevinco]

Restatements, prior period adjustments, dividends, and retained earnings appropriations. I think

Boise State Alumni

05/08/13 FAR Passed - 80
07/09/13 AUD Passed - 96
10/10/13 REG Passed - 75
11/07/13 BEC 77!!! I am DONE!!!!!!!!
12/13/2013 Received my CPA license on my son's 6th birthday in the mail! My son is always a blessing!!

BS - Environmental Science
BBA - Accountancy

Becker Lectures and MCQs. Click on my avatar for my LinkedIn page.

[kevinco]

Restatements, prior period adjustments, dividends, and retained earnings appropriations. I think

Boise State Alumni

05/08/13 FAR Passed - 80
07/09/13 AUD Passed - 96
10/10/13 REG Passed - 75
11/07/13 BEC 77!!! I am DONE!!!!!!!!
12/13/2013 Received my CPA license on my son's 6th birthday in the mail! My son is always a blessing!!

BS - Environmental Science
BBA - Accountancy

Becker Lectures and MCQs. Click on my avatar for my LinkedIn page.

[Author]

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