Asked by Latanya Haynes on Jun 24, 2024
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Ending retained earnings reported on the statement of retained earnings is calculated by adding stockholder investments and net income and subtracting net losses and dividends.
Ending Retained Earnings
The cumulative amount of a company's earnings not distributed to shareholders as dividends but retained by the company for reinvestment or to pay debt.
Stockholder Investments
Funds or assets that shareholders contribute to a corporation in exchange for ownership interest in the form of stock.
Dividends
Dividends refer to payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.
- Attain an understanding of the primary doctrines and presumptions integral to financial accounting.
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Learning Objectives
- Attain an understanding of the primary doctrines and presumptions integral to financial accounting.
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