Prepare Interview

Mock Exams

Make Homepage

Bookmark this page

Subscribe Email Address

Question: What is the purpose of the statement of retained earnings?
Answer: The statement of retained earnings shows changes in retained earnings over a specific period, including net income or loss and dividends paid to shareholders.

Example:

If a company has net income of $100,000 and pays dividends of $20,000, the retained earnings increase by $80,000.
Is it helpful? Yes No

Most helpful rated by users:

©2026 WithoutBook