The Statement of Retained Earnings that is prepared from the adjusted trial balance begins with the:
A)first stock account listed on the adjusted trial balance.
B)Retained Earnings balance on the adjusted trial balance.
C)first dividend account listed on the adjusted trial balance.
D)net income listed on the adjusted trial balance.

Question

Quizplus · Accepted Answer

The Statement of Retained Earnings shows how the company's retained earnings have changed over the accounting period. The beginning balance of retained earnings is taken from the adjusted trial balance, which is the amount of retained earnings listed on the previous period's balance sheet. Therefore, the statement begins with the Retained Earnings balance on the adjusted trial balance.

The Statement of Retained Earnings That Is Prepared from the Adjusted