If the beginning balance of Retained Earnings equals $10,000,net income for the year equals $6,000,and dividends for the year equal $2,000,then the ending balance of Retained Earnings equals $18,000.

Question

Quizplus · Accepted Answer

The calculation for ending retained earnings is incorrect.

Beginning retained earnings ($10,000) + net income ($6,000) - dividends ($2,000) = $14,000, not $18,000. Therefore, the correct answer is B) False.

If the Beginning Balance of Retained Earnings Equals $10,000,net Income