Consider the relationship between Retained Earnings that is reported on the balance sheet and Net Income that is reported on the Income Statement and select the correct answer: Net Income represents the cumulative earnings of a business over it's lifetime. Retained Earnings represents the cumulative Net Income of a business minus any Dividends that were distributed to shareholders. Net Income is calculated as Revenues minus Expenses minus Dividends for a particular accounting period. Retained Earnings does not include Dividends. Dividends are part of the Expense category. Revenues and Expenses are reported on the Balance Sheet