Which of the following equations represents the statement of retained earnings activity?

Question

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The statement of retained earnings shows the change in retained earnings from the beginning of the period to the end of the period. It is calculated by adding the beginning balance of retained earnings, adding the net income or subtracting the net loss, and then subtracting any dividends paid to shareholders. This formula is represented by D - beginning retained earnings + net income - dividends = ending retained earnings.

Which of the Following Equations Represents the Statement of Retained