The firm's statement of retained earnings reports changes in:
A)the amount of dividends paid in the current year.
B)the common equity accounts between balance sheet dates.
C)the interest on debt account paid in the current year.
D)the amount of net income earned in the current year.
E)the amount of depreciation charged in the current year.

Question

Quizplus · Accepted Answer

The statement of retained earnings shows changes in the retained earnings account, which is part of common equity, between balance sheet dates. It reflects net income and dividends paid, affecting retained earnings.

The Firm's Statement of Retained Earnings Reports Changes In