Consider the relationship between Retained Earnings that is reported on the balance sheet and Net Income that
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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: Question 1 options: 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.
Related Book For
Auditing An International Approach
ISBN: 978-0071051415
6th edition
Authors: Wally J. Smieliauskas, Kathryn Bewley
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