To Compute Ending Retained Earnings on the Statement of Retained

question 73

Multiple Choice

To compute ending retained earnings on the Statement of Retained Earnings:

• A)net income is added to the beginning retained earnings and dividends are subtracted from the beginning retained earnings.
• B)net income and dividends are both added to beginning retained earnings
• C)net loss and dividends are both added to beginning retained earnings
• D)net income or net loss does not affect retained earnings.

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A proposal by one party to another intending to create a legally binding agreement, subject to acceptance by the party to whom it is made.

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