A firm's ending equity equals the firms beginning equity plus any change in retained earnings.

Name: A firm's ending equity equals the firms beginning equity plus any change in retained earnings.
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Question

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This statement is true. Ending equity is calculated by adding the beginning equity to any change in retained earnings, which represents the portion of the firm's earnings that are not distributed to shareholders as dividends but are instead kept within the company for reinvestment or other purposes.

A Firm's Ending Equity Equals the Firms Beginning Equity Plus