Changes in retained earnings are commonly reported in the:
A)Statement of cash flows.
B)Balance sheet.
C)Statement of stockholders' equity.
D)Multiple-step income statement.
E)Single-step income statement.

Question

Quizplus · Accepted Answer

The changes in retained earnings are reported in the Statement of Stockholders' Equity, which shows the beginning balance of retained earnings, net income or loss for the period, dividends paid, and any other adjustments. It is a part of the financial statements that summarize the changes in equity accounts over a specific period.

Changes in Retained Earnings Are Commonly Reported in The