How To Prepare A Retained Earnings Assertion
These distributions, whether or not cash or stock, scale back the retained earnings stability. Prior period adjustments might appear, which are corrections of errors from previous monetary statements. Such changes directly have an effect on the beginning retained earnings stability to ensure accuracy. The first piece of information needed is the start retained earnings steadiness. This figure represents the accumulated retained earnings from all prior periods and is found on the balance sheet from the end of the earlier accounting...