The balance in the retained earnings account is affected by:
I. Issued share capital
II. Dividends paid or provided for
III. Transfers to or from other reserve accounts
IV. Changes in accounting policies and errors
A) II and III only.
B) I, II, III and IV.
C) I, II and III only.
D) II, III and IV only.

Question

Quizplus · Accepted Answer

Dividends paid or provided for, transfers to or from other reserve accounts, and changes in accounting policies and errors all affect retained earnings. Issued share capital does not directly affect retained earnings.

The Balance in the Retained Earnings Account Is Affected By