The statement of retained earnings reports a company's net income or net loss for a period of time.What is the source of the amount of net income or net loss?

Question

Quizplus · Accepted Answer

The source of the amount of net income or net loss is the income statement, which reports the company's revenues, expenses, gains, and losses over a period of time. The statement of retained earnings then takes the net income or net loss from the income statement and adjusts it for any dividends paid or stock issuances to arrive at the final retained earnings balance.

The Statement of Retained Earnings Reports a Company's Net Income