By looking at a statement of retained earnings, the effect of dividends on the ending balance of retained earnings can be determined.

Question

Quizplus · Accepted Answer

The retained earnings statement shows the beginning balance of retained earnings, any net income or loss for the period, any dividends paid, and the ending balance of retained earnings. Therefore, the effect of dividends on the ending balance of retained earnings can be determined by looking at this statement.

By Looking at a Statement of Retained Earnings, the Effect