Questions: The account that contains the corporation's cumulative earnings since the corporation was formed minus the dividends it has declared since it began is Common Stock. Income Summary. Retained Earnings. Fees Earned.

The account that contains the corporation's cumulative earnings since the corporation was formed minus the dividends it has declared since it began is
Common Stock.
Income Summary.
Retained Earnings.
Fees Earned.

Transcript text: The account that contains the corporation's cumulative earnings since the corporation was formed minus the dividends it has declared since it began is Common Stock. Income Summary. Retained Earnings. Fees Earned.

Solution

Answer

The answer is Retained Earnings.

Explanation

Option 1: Common Stock

Common Stock represents the ownership shares in a corporation. It does not account for the corporation's cumulative earnings or dividends.

Option 2: Income Summary

The Income Summary is a temporary account used during the closing process to summarize revenues and expenses for the period. It is not used to track cumulative earnings or dividends over time.

Option 3: Retained Earnings

Retained Earnings is the account that contains the corporation's cumulative earnings since its formation, minus any dividends declared. This account reflects the portion of net income that is retained in the business rather than distributed to shareholders.

Option 4: Fees Earned

Fees Earned is a revenue account that records income from services provided. It does not track cumulative earnings or dividends.

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