In the context of the statement of retained earnings, any change in retained earnings is found by subtracting:
A) cash flows from operating activities from cash flows from investing activities.
B) the value of capital expenditures, such as remodeling, from net income.
C) operating expenses from gross profit.
D) dividends paid to shareholders from net income.

Question

Quizplus · Accepted Answer

The change in retained earnings is calculated by subtracting dividends paid to shareholders from net income, as retained earnings represent the portion of net income that is not distributed as dividends.

In the Context of the Statement of Retained Earnings, Any