Retained Earnings Is

question 45

Multiple Choice

Retained earnings is

• A)the stockholders' claim on total assets.
• B)equal to cash.
• C)equal to revenues.
• D)the amount of net income kept in the corporation for future use.

Grasp the concept and financial implications of changing depreciation methods and useful life estimates for fixed assets.

Comprehend the treatment and reporting of changes in accounting estimates.

Identify the differences between changes in accounting principles, changes in accounting estimates, and error corrections.

Analyze the impact of accounting changes and error corrections on financial statements.