Which one of the following correctly represents one of the basic financial statement models?
A)Assets - Liabilities = Net Income
B)Assets + Liabilities = Owners' Equity
C)Revenues + Expenses = Net Income
D)Beginning Retained Earnings + Net Income - Dividends = Ending Retained Earnings

Question

Quizplus · Accepted Answer

The formula in choice D represents the statement of retained earnings, which is a basic financial statement model. It shows how retained earnings change over a period.

Which One of the Following Correctly Represents One of the Basic