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Tags
#cfa-level-1 #reading-23-financial-reporting-mechanics
Question
A company’s [...] is composed of the beginning balance (if any), plus net income, less any distributions to owners (dividends).
Answer
ending retained earnings

Tags
#cfa-level-1 #reading-23-financial-reporting-mechanics
Question
A company’s [...] is composed of the beginning balance (if any), plus net income, less any distributions to owners (dividends).
Answer
?

Tags
#cfa-level-1 #reading-23-financial-reporting-mechanics
Question
A company’s [...] is composed of the beginning balance (if any), plus net income, less any distributions to owners (dividends).
Answer
ending retained earnings
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A company’s ending retained earnings is composed of the beginning balance (if any), plus net income, less any distributions to owners (dividends).

Original toplevel document

3.2. Accounting Equations
ed together through the retained earnings component of owners’ equity. Beginning retained earnings is the balance in this account at the beginning of the accounting period, and ending retained earnings is the balance at the end of the period. <span>A company’s ending retained earnings is composed of the beginning balance (if any), plus net income, less any distributions to owners (dividends). Accordingly, the equation underlying retained earnings is: Equation (4a)  Endingretainedearnings=Beginningretainedearnings+Netincome−DividendsEndingretainedear

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