The retained earnings balance on IBM's balance sheet at the end of 2010 is equal to IBM's 2010 net income minus dividends paid in 2010.

Question

Quizplus · Accepted Answer

The retained earnings balance on a company's balance sheet is the accumulation of net income over the years, after dividends are paid, not just the net income minus dividends of a single year. It includes past years' earnings as well.

The Retained Earnings Balance on IBM's Balance Sheet at the End