the balance sheet reports the retained earnings balance at the end of a fiscal year. what is the source of…
the balance sheet reports the retained earnings balance at the end of a fiscal year. what is the source of this ending balance of retained earnings?\n\na. trial balance worksheet\nb. adjusted trial balance\nc. unadjusted trial balance\nd. statement of retained earnings
Answer
Brief Explanations:
The statement of retained earnings calculates the ending balance of retained earnings by considering the beginning balance, net income (or loss), and dividends. This calculated ending balance is then reported on the balance sheet. The trial balance worksheet, adjusted trial balance, and unadjusted trial balance are used for different purposes in the accounting cycle (such as checking equality of debits and credits, making adjustments) but do not directly provide the ending retained earnings balance.
Answer:
D. Statement of Retained Earnings