To Compute Ending Retained Earnings on the Statement of Retained

Multiple Choice

To compute ending retained earnings on the statement of retained earnings:

A) net income is added to the beginning retained earnings and dividends are subtracted from the beginning retained earnings.
B) net income and dividends are both added to beginning retained earnings.
C) net loss and dividends are both added to beginning retained earnings.
D) net income or net loss does not affect retained earnings.