Retained earnings at the end of the period is equal to:
A)assets plus liabilities.
B)profit earned for the period plus retained earnings at the start of the period.
C)retained earnings at the beginning of the period plus profit earned for the period minus dividends.
D)retained earnings at the beginning of the period plus profit earned for the period minus liabilities.

Question

Quizplus · Accepted Answer

Retained earnings at the end of the period is calculated by starting with the retained earnings balance from the beginning of the period, adding the profit earned for the period, and deducting any dividends paid out to shareholders. Therefore, option C is correct.

Retained Earnings at the End of the Period Is Equal