Q3RQ
Question
What does the statement of retained earnings show?
Step-by-Step Solution
Verified Answer
Statement of retained earnings shows change in the retained earnings accounts due to net income (or net loss), and dividends.
1Step-by-Step-Solution Step 1: Explanation on Retained Earnings
Retained earnings are the accumulated earnings of the previous years.
2Step 2: Explanation on Statement of Retained Earnings
Statement of retained earnings is a part of financial statements, which is prepared to show the fluctuations in the retained earnings balance, which het effected due to net income or loss, and dividends.
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