Chapter 11 - Reporting and Interpreting Owners’ Equity
16. Retained earnings is the accumulated amount of all net income of the corporation
less all losses and less the accumulated amount of all dividends declared to date. The primary components of retained earnings are: beginning balance, plus net income, less net losses, minus dividends declared, equals the ending balance.
ANSWERS TO MULTIPLE CHOICE
1. c) 6. b)
2. d) 7. c)
3. b) 8. c)
4. a) 9. d)
5. c) 10. a)
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