21. The financial statement that shows the beginning balance of Retained Earning

Question

21. The financial statement that shows the beginning balance of Retained Earnings; the changes in equity that resulted from, net income (or net loss); dividends; and the ending balance, is the: A. Statement of financial position. B. Statement of cash flows. C. Balance sheet. D. Income statement. E. Statement of Retained Earnings. 22. A debit: A. Always increases an account. B. Is the right-hand side of a T-account C. Always decreases an account. D. Is the left-hand side of a T-account. E. Is not need to record a transaction. A. Debit B. Increase. C. Credit D. Decrease. E. Account balance 24. A debit is used to record: A. A decrease in an asset account B. A decrease in an expense account C. An increase in a revenue account D. An increase in the balance of an owner's capital account. E. An increase in the balance of the owner's withdrawals account 25. A credit entry: A. Increases asset and expense accounts, and decreases liability, owner's capital, and revenue accounts. B. Is always a decrease in an account C Decreases asset and expense accounts, and increases liability, owner's capital, and revenue accounts. D. Is recorded on the left side of a T-account. E. Is always an increase in an account. 26. The classification and normal balance of the dividends account is a. an expense with a credit balance b an expense with a debit balance c a liability with a credit balance d. stockholders' equity with a debit balance 27. Which of the following is not a correct rule of debits and credits? a. Assets, expenses, and dividends are increased by debits. b. Assets are decreased by credits and have a normal debit balance. Liabilities, revenues, and stockholders' equity are increased by credits. d. The normal balance for revenues and expenses is a credit.

Explanation / Answer

Dear student, only one question is allowed at a time. I am answering the first question

21)

The statement of retained earnings shows the details of how retained earnings have arrived at their closing balance by showing details such as opening balance of retained earnings, addition to retained earnings in the form of net income and reductions such as dividends

So, option E is the correct option

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