Which financial statement would report a firm's total profits accumulated to date minus distributions to owners?
A)Income statement
B)Statement of cash flows
C)Balance sheet
D)Statement of cost of goods sold

Question

Quizplus · Accepted Answer

The financial statement that reports a firm's total profits accumulated to date minus distributions to owners is the retained earnings section of the balance sheet. Retained earnings represent the portion of net income that has been kept by the firm for reinvestment in the business rather than paid out as dividends to shareholders.

Which Financial Statement Would Report a Firm's Total Profits Accumulated