Retained earnings at the end of the period is equal to
A)retained earnings at the beginning of the period plus net income minus liabilities.
B)retained earnings at the beginning of the period plus net income minus dividends declared.
C)net income for the period.
D)assets plus liabilities.

Question

Quizplus · Accepted Answer

Retained earnings at the end of the period are calculated by taking the retained earnings at the beginning of the period, adding the net income earned during the period, and then subtracting any dividends declared. This reflects the amount of earnings that have been retained in the business for growth and investment, rather than being distributed to shareholders.

Retained Earnings at the End of the Period Is Equal