Which of the following statements about the statement of retained earnings is false? A. It covers...

Which of the following statements about the statement of retained earnings is false?

A. It covers the same time period as the income statement and provides a link between the income statement and the balance

sheet.

B. It need not be prepared if a separate statement of stockholders' equity is prepared.

C. It shows whether a corporation has sufficient funds to pay a cash dividend.

explain

Solutions

Expert Solution

Statement of retained earnings is a financial statement which shows the changes in retained earnings of a company from begining of company's incorporation. Profit calculated in statement of profit and loss is also transferred to statement of retained earnings. Dividends are paid from retained earnings.

As it is discussed in above para that it is prepared from begining of company's incorporation. Option 1 is false

ekkarill92 answered 1 year ago

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