Which financial statement would you analyze to determine if a company distributed any of its profits to its shareholders?
A) Balance Sheet
B) Statement of Retained Earnings
C) Income Statement
D) Statement of Public Accounting

Question

Quizplus · Accepted Answer

The Statement of Retained Earnings shows the change in retained earnings balance from the beginning of the period to the end. If there were any dividends paid to shareholders, the amount would be deducted from the retained earnings balance on the statement, indicating that profits were distributed to shareholders.

Which Financial Statement Would You Analyze to Determine If a Company