The shareholders' equity section of the statement of financial position uses the amount for Retained Earnings found on the
A)unadjusted trial balance.
B)adjusted trial balance.
C)statement of changes in equity.
D)the previous year's statement of financial position.

Question

Quizplus · Accepted Answer

The Retained Earnings amount in the shareholders' equity section is derived from the statement of changes in equity, which reflects the changes in retained earnings after accounting for net income and dividends.

The Shareholders' Equity Section of the Statement of Financial Position