The statement of changes in retained earnings for the year shows:
A)the retained earnings balance at the beginning of the year.
B)amounts received from the sale of additional common stock during the year.
C)gains or losses from discontinued operations during the year.
D)the effect of a stock split during the year.

Question

Quizplus · Accepted Answer

The statement of changes in retained earnings begins with the retained earnings balance at the beginning of the year, then adjusts for net income, dividends, and any prior period adjustments to arrive at the ending retained earnings balance.

The Statement of Changes in Retained Earnings for the Year