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lara [203]
3 years ago
5

All of the following statements are true regarding retained earnings except

Business
1 answer:
Amanda [17]3 years ago
7 0

Answer:

The correct answer is option c.

Explanation:

Retained earnings are the part of the revenue which is left after making payments to investors. In other words, it is the part of net income which is left after paying dividends.

It is calculated by adding net income to or subtracting net losses from the previous term's retained earnings and then subtracting net dividend paid to the shareholders.

It is calculated at the end of each accounting period and the retained earnings beginning balance is usually the retained earnings ending balance from the previous period.

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