Question

In: Accounting

The statement of retained earnings should be prepared


The statement of retained earnings should be prepared 

  • before the income statement and after the balance sheet 

  • after the income statement and before the balance sheet 

  • after the income statement and balance sheet 

  • before the income statement and balance sheet

Solutions

Expert Solution

The statement of retained earnings should be prepared after the income statement and before the balance sheet.
The net income(loss) from income statement is used to calculate ending balance of retained earnings.
Option B is correct

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