ASU Home My ASU Colleges & Schools Map & Locations Organizations Help QUESTION 12 Which of the following statements is true regarding the retained earnings account? O The retained earnings account is the sum of all net income earned since inception of the firm, less any payments made to shareholders in the form of dividends. The retained earnings account is the sum of all net income and cash earned since the inception of the firm. O The retained earnings account is the sum of all cash earned less any payments made to shareholders in the form of dividends. O The retained earnings account is the measurement of all distributed earnings. QUESTION 13 During a period of inflation which method of inventory valuation will produce the highest ending inventory balance on the balance sheet? O LIFO Ostraight-line Average cost ? FIFO