Which of the following statements shows the portion of the firm's earnings that has been saved rather than paid out as dividends?
A) Balance sheet
B) Income statement
C) Statement of retained earnings
D) Statement of cash flows
E) Proxy statement

Question

Quizplus · Accepted Answer

The statement of retained earnings shows the portion of a firm's earnings that has been saved instead of paid out as dividends. It shows changes in retained earnings during a specific accounting period and is a component of a company's financial statements. The balance sheet shows the firm's assets, liabilities, and equity at a specific point in time; the income statement shows the firm's revenues and expenses over a specific period; the statement of cash flows shows the firm's cash inflows and outflows over a specific period; and the proxy statement provides information to shareholders about matters that will be voted on at a company's annual meeting.

Which of the Following Statements Shows the Portion of the Firm's