The Equation That Describes the Relationship Between the Balance Sheet

question 99

Multiple Choice

The equation that describes the relationship between the balance sheet and the income statement through the Retained Earnings account is as follows:

• A)Retained Earnings (beginning) - Net Income = Retained Earnings (ending)
• B)Retained Earnings (beginning) + Net Income + Dividends = Retained Earnings (ending)
• C)Retained Earnings (beginning) - Net Income - Dividends = Retained Earnings (ending)
• D)Retained Earnings (beginning) - Net Income + Dividends = Retained Earnings (ending)
• E)Retained Earnings (beginning) + Net Income - Dividends = Retained Earnings (ending)

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