The statement of retained earnings
A) is required as part of the financial statements under ASPE.
B) will show income taxes paid during the year.
C) will never show losses.
D) will, in some cases, fail to reconcile the beginning and ending retained earnings balances.

Question

Quizplus · Accepted Answer

The statement of retained earnings is indeed required as part of the financial statements under Accounting Standards for Private Enterprises (ASPE). This statement provides a reconciliation of the beginning and ending balances of retained earnings, showing how net income or loss and any dividends paid during the period affect the equity of the company.

The Statement of Retained Earnings