(Beginning retained earnings balance)+ (Income from the period)- (____)= (Ending retained earnings balance)

Question

Quizplus · Accepted Answer

The missing element in the equation is the dividends, which represent the amount of profit that is distributed to shareholders. To calculate the ending retained earnings balance, we need to subtract the dividends from the sum of the beginning retained earnings balance and the income from the period. Therefore, the correct formula is:
Beginning retained earnings balance + Income from the period - Dividends = Ending retained earnings balance.

(Beginning Retained Earnings Balance)+ (Income from the Period)- (____)= (Ending