In the retained earnings statement, revenues are listed first, followed by expenses, and net income (or net loss).

Question

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In the retained earnings statement, the first amount listed is the beginning retained earnings balance, followed by additions such as net income (or deductions such as net loss), and then dividends to arrive at the ending retained earnings balance. Revenues and expenses are components of the income statement, not the retained earnings statement.

In the Retained Earnings Statement, Revenues Are Listed First, Followed