Retained earnings for the beginning of a period appears on the statement of retained earnings while the ending balance of retained earnings appears on the balance sheet.

Question

Quizplus · Accepted Answer

This statement is true. The statement of retained earnings shows the beginning balance of retained earnings, changes to that balance during the period (such as net income or dividends), and the resulting ending balance. The ending balance of retained earnings is then carried over and reported on the balance sheet as a component of stockholder's equity.

Retained Earnings for the Beginning of a Period Appears on the Statement