Question

Retained earnings a.over time will have a direct relationship with the amount of cash on hand if the corporation is profitable. b.cannot have a debit balance. c.is the cumulative total of net income plus dividends. d.is the cumulative total of net income, minus net losses, and minus dividends.

Answer 1

Answer:

d.is the cumulative total of net income, minus net losses, and minus dividends.

Explanation:

As we know that

The stockholder equity statement involves the common stock and the retained earnings statement

It is prepared to find out the ending balance of common stock and the retained earning that is shown below:

The ending balance of retained earning = Beginning balance of retained earnings + net income or minus net loss - dividend paid

And, the ending balance of the common stock = Beginning balance of common stock + issuance of the shares