Which of the following financial statements is prepared to show the changes in the common equity accounts between balance sheet dates?
A)Pro forma statement
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 is prepared to show the changes in the common equity accounts between balance sheet dates. It starts with the beginning balance of retained earnings and then adds net income (or subtracts net loss), and then subtracts dividends to arrive at the ending balance of retained earnings.

Which of the Following Financial Statements Is Prepared to Show