Retained Earnings Appears on Which of the Following Financial Statements

question 146

Multiple Choice

Retained earnings appears on which of the following financial statements?

• A)Statement of Retained Earnings, Statement of Cash Flows, and Balance Sheet, but not the Income Statement
• B)Statement of Retained Earnings, Statement of Cash Flows, and Income Statement, but not the Balance Sheet
• C)Statement of Retained Earnings and Statement of Cash Flows, but not the Income Statement or Balance Sheet
• D)Statement of Retained Earnings and Balance Sheet, but not the Income Statement or Statement of Cash Flows

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Definitions:

Completed Unit

A unit of product that has completed the manufacturing process and is considered ready for sale or delivery to the customer.

Actual Rate

The real interest rate or exchange rate that is applied in current transactions, distinct from theoretical or future rates.

Standard Rate

A predetermined cost or price used in budgeting and costing exercises, reflecting an expected or agreed level of expenditure or charge.

Variable Factory Overhead Controllable Variance

The difference between the actual and budgeted variable overhead costs that management has the ability to influence or control.