The statement of retained earnings accomplishes which of the following?
A)It summarizes income earned and dividends paid over a single period of the business.
B)It accumulates all revenues for the year.
C)It summarizes the balance sheet accounts.
D)It summarizes the capital stock accounts over the life of the business.

Question

Quizplus · Accepted Answer

The statement of retained earnings shows how much income the company has earned and how much of that income has been paid out as dividends over a specific period, typically the previous year. It does not accumulate all revenues for the year, summarize the balance sheet accounts, or summarize the capital stock accounts over the life of the business.

The Statement of Retained Earnings Accomplishes Which of the Following