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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
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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
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