contestada

The retained earnings statement should be prepared a.after the income statement and balance sheet b.before the income statement and balance sheet c.before the income statement and after the balance sheet d.after the income statement and before the balance sheet

Respuesta :

Answer:

d.after the income statement and before the balance sheet

Explanation:

The retained earning statement is to be prepared after preparing the income statement so that the profit or loss what would be calculated the same is to be used for computing the ending balance of retained earnings

The formula is shown below:

The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid

Hence, d option is correct