The financial statement that shows the beginning balance of retained earnings; the changes in retained earnings that resulted from net income (or net loss); dividends; and the ending balance, is the:
A)Statement of financial position.
B)Statement of cash flows.
C)Balance sheet.
D)Income statement.
E)Statement of retained earnings.

Question

Quizplus · Accepted Answer

The statement of retained earnings shows the beginning balance of retained earnings, the changes in retained earnings that result from net income (or net loss), dividends, and the ending balance. This statement summarizes how the company's earnings were used or retained during the period.

The Financial Statement That Shows the Beginning Balance of Retained