Which of the Following Equations Is Correct

question 30

Multiple Choice

Which of the following equations is correct?

• A) Retained earnings (up to the end of previous period)- Net income (after tax)of the year - Dividends declared - Transfers to reserves = Retained earnings (at year-end)
• B) Retained earnings (up to the end of previous period)- Net income (after tax)of the year + Dividends declared + Transfers to reserves = Retained earnings (at year-end)
• C) Retained earnings (up to the end of previous period)+ Net income (after tax)of the year + Dividends declared + Transfers to reserves = Retained earnings (at year-end)
• D) Retained earnings (up to the end of previous period)+ Net income (after tax)of the year - Dividends declared - Transfers to reserves = Retained earnings (at year-end)