Retained earnings at the end of the period is equal to

Question

Quizplus · Accepted Answer

Retained earnings at the end of the period represent the accumulated profits that have been retained in the business after paying dividends. Therefore, retained earnings at the end of the period can be calculated as retained earnings at the beginning of the period plus net income minus dividends. Option A is incorrect because it subtracts liabilities instead of dividends. Option C is incorrect because it only represents the net income, not the total retained earnings. Option D is incorrect because it includes assets, which are not relevant to the calculation of retained earnings.

Retained Earnings at the End of the Period Is Equal