Asked by ALDONA KEKELIA on Jun 11, 2024
Verified
The retained earnings statement may be combined with the income statement.
Retained Earnings Statement
A financial statement that summarizes the changes in retained earnings for a specific period.
Income Statement
A financial statement that provides a summary of a company’s revenues, expenses, and profits/losses over a specified period.
- Analyze the reporting requirements for stock dividends, treasury stock, and retained earnings in financial statements.
Verified Answer
BH
BRENT HollingtonJun 12, 2024
Final Answer :
True
Explanation :
The retained earnings statement can be combined with the income statement to create a statement of comprehensive income, also known as a statement of retained earnings. This statement shows the net income earned by the company and any changes to the retained earnings account during the period.
Learning Objectives
- Analyze the reporting requirements for stock dividends, treasury stock, and retained earnings in financial statements.