Answer to Question #125903 in Accounting for Everlyn

Question

At the end of the year, where is all net income or loss transferred?
A. Fixed Asset
B. Retained Earnings
C. Equity
D. Assets and Liabilities
Explain why the answer is correct.

Answer 1

Answer B. Retained Earnings.

The retained earnings of a company is the accumulated net income of the company that is retained by the company at a specific point of time, for instance at the end of a reporting period or year..