6th Question, Day 6 , CMA(US), Part 2, Practice Questions

[@mohammedafzal9463]

Statement of retained earnings is summary of total accumulated profit and losess of a company, it contains opening balance for accumulated retained earn for the year and add current year profit or loss and add dividend paid and and add statutory reserve made and will get the closing balance.

[@RivoraTube]

You have made a good attempt to explain it . Dividends paid always reduce the Retained Earnings. Hence, they should be subtracted from it and not added to it. Statutory reserves represent restricted Retained Earnings I am explaining the entire concept in today's 7th day video. You may please go through it.