The Retained Earnings Statement

question 126

Multiple Choice

The retained earnings statement

• A) is the equity statement for a corporation.
• B) will show an addition to the beginning retained earnings balance for an understatement of net income in a prior year.
• C) will not reflect net losses.
• D) will, in some cases, fail to reconcile the beginning and ending retained earnings balances.

---

Definitions:

Domestic Price

The price of goods or services within a country's borders, exclusive of international factors.

World Price

The price at which goods trade on the international market, reflecting the global balance of supply and demand for those goods.

Import

Goods or services that come into a country from abroad for sale.

Consumer Surplus

The difference between the maximum price a consumer is willing to pay for a product and the actual price they do pay.