The Statement of Retained Earnings is used to report:

Question

Quizplus · Accepted Answer

The Statement of Retained Earnings reports the accumulated net profits not paid out in dividends, which is generally used to fund future growth and development of the company. It also shows the changes in retained earnings from the beginning to the end of the accounting period, which includes net income or loss, dividends, and other adjustments. It does not report accumulated dividends paid out to shareholders, beginning and ending cash balances or beginning and ending revenues for the period.

The Statement of Retained Earnings Is Used to Report