The retained earnings statement begins with the beginning balance followed by
A) net income (loss) and dividends
B) net income (loss) and issuances of capital stock
C) issuances of capital stock and dividends
D) issuances of capital stock, net income (loss), and dividends

Question

Quizplus · Accepted Answer

The retained earnings statement shows the beginning balance of retained earnings and then lists any net income or net loss for the period, followed by any dividends paid out to shareholders. Therefore, the correct answer is A, as it includes both net income (loss) and dividends. Choices B, C, and D either do not include net income (loss) or include other items that are not relevant to the retained earnings statement.

The Retained Earnings Statement Begins with the Beginning Balance Followed