Which of the Following Mathematical Expressions Calculates a Firm's Retained

Multiple Choice

Which of the following mathematical expressions calculates a firm's retained earnings at the end of a year?

A) Retained earnings = Beginning balance of retained earnings − Net income in the current year + Net loss in the previous year
B) Retained earnings = Beginning balance of retained earnings + Net income in the current year + Dividends paid in the current year
C) Retained earnings = Beginning balance of retained earnings + Net income in the current year − Dividends paid in the current year
D) Retained earnings = Beginning balance of retained earnings − Net loss in the previous year − Dividends paid in the current year
E) Retained earnings = Beginning balance of retained earnings − Net income in the current year + Dividends paid in the current year