the statement of retained earnings reports the amount of dividends declared over a period of time. what is…

the statement of retained earnings reports the amount of dividends declared over a period of time. what is the source of the amount of dividends declared?\na. balance sheet\nb. cash dividend statement\nc. adjusted trial balance\nd. income statement

the statement of retained earnings reports the amount of dividends declared over a period of time. what is the source of the amount of dividends declared?\na. balance sheet\nb. cash dividend statement\nc. adjusted trial balance\nd. income statement

Answer

Brief Explanations:

  • Balance Sheet: It shows assets, liabilities, and equity at a specific date, not dividend declarations.
  • Cash Dividend Statement: Not a standard financial statement.
  • Adjusted Trial Balance: It is used to prepare financial statements. The dividend account balance (from the adjusted trial balance) is used in the retained earnings statement for dividend - declared amount.
  • Income Statement: Reports revenues and expenses to calculate net income, not dividends.

Answer:

C. Adjusted Trial Balance