To explain the change in the amount of retained earnings between successive balance sheet dates,it is customary to prepare a(n):

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A retained earnings statement shows the beginning balance of retained earnings, any adjustments made to that balance through net income or net loss, and any dividends paid to shareholders, resulting in the ending balance of retained earnings. This is a common way to explain the change in retained earnings between two balance sheet dates.

To Explain the Change in the Amount of Retained Earnings