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Horngren'S Financial And Managerial Accounting
Found in: Page 707

Short Answer

What does the statement of retained earnings report?

The statement of retained earnings reports how the corporation's retained earnings balance transformed from the start of the period to the end of the period.

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Step by Step Solution

Step 1: Introduction to topic

Retained earnings is the amount of net income left with the corporation after it has paid dividends to its stockholders.

Step 2: The statement of retained earnings report

The statement of retained earnings is the connecting point between the income statement and the balance sheet of a corporation. It shows any deductions from the earning after tax to determine the net sum that to be added in shareholder's equity.

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