Financial Statement: Fill In the Blanks

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on March 25, 2022

1. The statement of retained earnings is also known as the .

2. From the date of , the company can legally earn profit.

3. Profit prior to incorporation cannot be distributed in the form of .

4. Profit earned before the issuance of a certificate entitling the company to commence business is shown as a in the balance sheet.

5. A dividend is a distribution of a portion of the company’s to shareholders.

6. An unclaimed dividend is shown as a in the balance sheet.

7. Interim dividends enhance the of the corporation.

8. When a dividend is declared, is debited.

9. The expenses and revenue summary is also known as the .

10. When net income is transferred to retained earnings, the expenses and revenue summary is .

Frequently Asked Questions

What is meant by Retained Earnings?

The term Retained Earnings refers to the amount of profit a company has left over after paying all its direct and indirect costs, income taxes, and dividends owed to shareholders.

What is a dividend and how is it paid?

Capital reserve means the part of a company’s profits that is set aside for a particular purpose, such as long-term projects or to write off capital expenses.

What is a dividend and how is it paid?

What is a dividend and how is it paid?

What does it mean to be incorporated?

When a business is incorporated, the owners of that business legally establish themselves and their business as separate entities, by filing Articles of Incorporation paperwork with the appropriate state agencies.

Are liabilities bad?

A business may incur a liability (borrowed money) in order to purchase new assets that help it operate, such as tools or vehicles. However, too much liability can affect a small business’ finances.

True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.

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