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      Question

      Which of the following financial statements shows a

      company's retained earnings over time?
      A Balance sheet Correct Answer Incorrect Answer
      B Income statement Correct Answer Incorrect Answer
      C Statement of cash flows Correct Answer Incorrect Answer
      D Statement of changes in equity Correct Answer Incorrect Answer

      Solution

      The statement of changes in equity shows a company's retained earnings over time, as well as any changes in its capital structure.

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