The amount of retained earnings is shown on the
A) income statement.
B) balance sheet.
C) statement of cash flows.
D) statement of changes in stockholders' equity.
E) balance sheet and statement of changes in stockholders' equity.

Question

Quizplus · Accepted Answer

Retained earnings are reported on both the balance sheet and the statement of changes in stockholders' equity. The balance sheet reports the total amount of retained earnings at a given point in time, while the statement of changes in stockholders' equity shows the changes in retained earnings over a specific period, including net income or loss, dividends paid, and any other adjustments.

The Amount of Retained Earnings Is Shown on the