In the statement of stockholders' equity,Retained Earnings had a beginning balance of $60,000.During the period,the company reports a net loss of $10,000 and net cash outflows of $15,000.The ending balance in the Retained Earnings account is:
A)$60,000.
B)$35,000.
C)$50,000.

Question

Quizplus · Accepted Answer

The ending balance in the Retained Earnings account is calculated by taking the beginning balance and adjusting it for the net income or loss. Here, the beginning balance is $60,000, and there is a net loss of $10,000. The net cash outflows do not directly affect the Retained Earnings balance. Therefore, the ending balance is $60,000 - $10,000 = $50,000.

In the Statement of Stockholders' Equity,Retained Earnings Had a Beginning