At the start of the first year of operations,Retained Earnings would be:
A)equal to zero.
B)equal to Common Stock.
C)equal to stockholders' equity.
D)equal to the Net Income.

Question

Quizplus · Accepted Answer

Retained Earnings is the amount of earnings accumulated from prior years that have not been distributed as dividends.At the start of the first year of operations,there would be a zero balance in Retained Earnings.

At the Start of the First Year of Operations,Retained Earnings