The ending balance of the retained earnings account on the statement of retained earnings is the same amount that appears in the stockholders' equity section of the balance sheet.

Question

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This is because the ending balance of the retained earnings account represents the cumulative earnings that have been kept by the company rather than paid out as dividends. This amount is included in the total stockholders' equity, which is reported on the balance sheet.

The Ending Balance of the Retained Earnings Account on the Statement