Identify the missing component (X)in the following equation: Retained earnings, ending balance = Net income to date + prior period adjustments to date - cash and property dividends to date - X
A)Stock dividends to date.
B)Net unrealized gain or loss on securities available for sale.
C)Stock dividends and splits to date.
D)Stock splits to date.

Question

Quizplus · Accepted Answer

Stock dividends to date are deducted from retained earnings as they represent a distribution of earnings to shareholders, similar to cash and property dividends.

Identify the Missing Component (X)in the Following Equation: Retained Earnings