Which of the following is not showed on the retained earning
Which of the following is not showed on the retained earnings statement of a company?
Net income of the company
Dividends paid by the company
Ending balance of retained earnings
Additional capital stock issued by the company
| A. | Net income of the company | |
| B. | Dividends paid by the company | |
| C. | Ending balance of retained earnings | |
| D. | Additional capital stock issued by the company |
Solution
Formate of Retained Earning is as below,
Opening Retained Earning = XXX
Add: Net Profit of the year = XXX
Less: Dividends paid for the year XXX
Ending Balance of Retained Earning XXX
So as per the above formate Additional capital stock issued by the company is not part pf the retained earning statement.
So.
answer = Option D = Additional capital stock issued by the company
