Final answer:
The statement of retained earnings shows how retained earnings changed in a period due to acquiring assets and paying liabilities.
Step-by-step explanation:
The statement of retained earnings shows how retained earnings changed in a period due to acquiring assets and paying liabilities. Retained earnings are a portion of a company's net income that is retained by the company instead of being distributed to shareholders as dividends.
When a company acquires assets or pays off liabilities, it affects the amount of retained earnings and is reflected in the statement of retained earnings.