Which financial statement reconciles net income earned during a given period and any cash dividends paid within that period using the change in retained earnings between the beginning and end of the period?
A)Balance sheet
B)Income statement
C)Statement of retained earnings
D)Statement of cash flows

Question

Quizplus · Accepted Answer

The statement of retained earnings reconciles net income earned during a period with any cash dividends paid by using the change in retained earnings between the beginning and end of the period. This statement shows how much of the net income is being kept within the company for future growth and how much is being distributed to shareholders in the form of dividends. The balance sheet shows the company's assets, liabilities, and equity at a specific point in time. The income statement shows the company's revenue, expenses, and net income over a period of time. The statement of cash flows shows the cash inflows and outflows during a period and how they affect the company's overall cash balance.

Which Financial Statement Reconciles Net Income Earned During a Given