Lola P.

asked • 10/07/21

Accounting Question Help - The statement of retained earnings

  1. What does the beginning balance of retained earning indicate? And what does the following that is reported in the statement of retained earnings mean as well?
  2. The addition of net income or the subtraction of net loss to that beginning balance.
  3. The subtraction of dividends; and
  4. The ending balance of retained earnings.
  5. The ending balance is used on the balance sheet.

1 Expert Answer

By:

Lola P.

Hello, and thank you, another question, would the opening balance of retained earnings be the same as the beginning balance? And just to confirm, so the beginning balance of the current year would be from last year's ending balance?
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10/08/21

Oliver S.

tutor
Yes
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10/08/21

Lola P.

which question are you referring to? The one about how the opening balance is the same as beginning balance or that the beginning balance of the current year is the same as last year's ending balance.
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10/08/21

Oliver S.

tutor
Beginning year retained earnings is the same at previous years and is used to calculate current years
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10/08/21

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