Each Item in the Statement of Retained Earnings Can Appear

question 175

Essay

Each item in the statement of retained earnings can appear on another financial statement.Choose the appropriate letter to match the item in the statement of retained earnings with the related financial statement.
ITEM ON STATEMENT OF RETAINED EARNINGS
1.____ Retained earnings,January 1,Year 3
2.____ Net income for Year 3
3.____ Dividends for Year 3
4.____ Retained earnings,December 31,Year 3
FINANCIAL STATEMENT
A.Balance sheet at end of Year 3
B.Statement of cash flows for Year 3
C.Income statement for Year 2
D.Balance sheet at end of Year 2
E.Income statement for Year 3

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Definitions:

Overall Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment, reflecting the health of an economy.

Inflation

The upward movement in the overall price points of goods and services, cutting down on purchasing strength.

Average Price Level

A measure of the overall level of prices in an economy, often considered in terms of a price index.

Good and Service

Products that satisfy human wants directly (goods) or indirectly (services).