Understanding Retained Earnings in Financial Statements

Chapter 4, Problem 21

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QUESTION:

On which two financial statements would the Retained Earnings account appear?

A. Balance Sheet

B. Income Statement

C. Retained Earnings Statement

D. Statement of Cash Flows

Questions & Answers

QUESTION:

On which two financial statements would the Retained Earnings account appear?

A. Balance Sheet

B. Income Statement

C. Retained Earnings Statement

D. Statement of Cash Flows

ANSWER:

Step 1 of 2

Financial statements: The accounting statements which communicate the profitability and financial stability of the company in the market are known as financial statements. There are four financial statements: income statement, statement of owner’s equity, balance sheet, and cash flow statement.

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Understanding Retained Earnings in Financial Statements
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Learn about the significance of Retained Earnings in a company's financial structure. Understand how Retained Earnings fit into different financial statements. Grasp the distinction between major financial statements and their roles.


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