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FSA: beginning retained earnings and ending retained earning

is it:
ending retained earnings=
beginning retained earnings + net income - dividend paid? Thanks

Yes it is.

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Yes you are correct.

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I have just come across a question from Elan stating that dividends declared should be subtracted.
The question was specifically designed to address this.
Seems wrong.
Thoughts?
M.

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Once declared they become a LIABLIITY for the company, and so they should be subtracted. Otherwise the accounting equation will not balance.

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