How Is a Firm's Retained Earnings at the End of the Year

Multiple Choice

How is a firm's retained earnings at the end of the year calculated?

A) Retained earnings = Beginning balance of retained earnings minus net income in the current year plus net loss in the previous year
B) Retained earnings = Beginning balance of retained earnings plus net income in the current year plus dividends paid in the current year
C) Retained earnings = Beginning balance of retained earnings plus net income in the current year minus dividends paid in the current year
D) Retained earnings = Beginning balance of retained earnings minus net loss in the previous year minus dividends paid in the current year
E) Retained earnings = Beginning balance of retained earnings minus net income in the current year plus dividends paid in the current year