14.9k views
2 votes
Retained earnings a.cannot have a debit balance b.is equal to cash on hand c.is the same as contributed capital d.changes are summarized in the retained earnings statement

User Ewald
by
7.9k points

1 Answer

3 votes

Answer:

d. Changes are summarized in the retained earnings statement

Step-by-step explanation:

Retained earnings also known as accumulated earnings, can be defined as the total amount of net income held by a corporation for its future use after paying out dividends to its shareholders.

The retained earnings statement refers to a financial statement that enumerate changes in retained earnings for an organization over a specific period of time. The retained earnings statement is the statement of owner's equity that outlines details of changes in the amount of retained earnings (profits) over a specified period in an organization.

Hence, retained earnings changes are summarized in the retained earnings statement.

The main purpose of preparing a retained earnings statement is to boost investor's confidence and improve market value.

User Francesco Galgani
by
8.4k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.