Final answer:
It is True that some Japanese companies view bonuses as a distribution of profits and account for them as such, which may result in improved employee productivity.
Step-by-step explanation:
The question of whether Japanese companies consider bonuses to be a distribution of profits and charge them against retained earnings is indeed a business practice in some companies in Japan. It is True that bonuses are sometimes viewed as a distribution of company profits. Essentially, companies may decide to reward their employees with bonuses when the company performs well, sharing part of the profits generated as a form of incentive. This can lead to improved productivity among employees who feel directly involved in the success of the company they work for.
Japanese companies consider bonuses to be a distribution of profits and charge them against retained earnings. This means that when companies pay out bonuses to their employees, they deduct the amount from their retained earnings, which is the portion of profits that a company keeps for future use or reinvestment. By considering bonuses as a distribution of profits, Japanese companies ensure that the bonus payments are accounted for and do not impact the company's overall financial position.