Statement $1$ Retained earnings is an important element on the balance sheet that makes up equity on the balance sheet.

Statement $2$ Assuming a company has consistently made losses the accumulated loss of a company is the accumulated net income $/$ loss of the company that is retained by the company over the period.

Question $12$Answer

a$.$

Only statement $1$ is true.

b$.$

Only statement $2$ is true.

c$.$

Both statements are true.

d$.$

Both statements are false.