Which of the following statements about the statement of retained earnings is correct?
A)Dividends increase net income and are added to calculate the ending balance of Retained Earnings.
B)Dividends are subtracted to calculate the ending balance of Retained Earnings.
C)Dividends are not used to calculate the ending balance of Retained Earnings.
D)Dividends are not reported on the statement of retained earnings.

Question

Quizplus · Accepted Answer

Equation for the statement of retained earnings:
Beginning retained earnings + Net income − Dividends = Ending retained earnings

Which of the Following Statements About the Statement of Retained