The Ending Balance of the Retained Earnings Account Appears in

question 136

Multiple Choice

The ending balance of the retained earnings account appears in

• A) both the retained earnings statement and the income statement
• B) only the retained earnings statement
• C) both the retained earnings statement and the balance sheet
• D) both the retained earnings statement and the statement of cash flows

---

Definitions:

Cash Receipts Journal

A specialized accounting journal used to record all cash inflows or cash received by an organization.

Prepaid Insurance

An asset account representing insurance paid in advance, which will be expensed over the period it benefits.

Fees Earned

Income or revenue generated through providing services.

Creditor's Account

An account maintained to record transactions involving credit purchases or loans received, indicating the amount owed to suppliers or lenders.