Retained Earnings Appear on Which of the Following Financial Statements

question 107

Multiple Choice

Retained earnings appear on which of the following financial statements?

• A) statement of retained earnings and cash flow statement, but not the income statement or balance sheet
• B) statement of retained earnings, cash flow statement, and income statement, but not the balance sheet
• C) statement of retained earnings, cash flow statement, and balance sheet, but not the income statement
• D) statement of retained earnings and balance sheet, but not the income statement or cash flow statement

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Definitions:

Income Tax Expense

The cost associated with income taxes due to a government, calculated based on taxable income.

Cash Flows

The total amount of money being transferred into and out of a business, particularly in relation to its operating, investing, and financing activities.

Net Income

The ultimate profit of a firm calculated by subtracting all outgoings and taxation from the gross revenue.

FIFO

"First In, First Out," an inventory valuation method where items produced or acquired first are sold, used, or disposed of first.