In a Statement of Retained Earnings, which statement is correct? Multiple Choice Both cash dividends and stock dividends would be deducted, only for common stock. Statement of Retained Earnings is a rollforward presenting the opening balance for the period, plus net income for the year, minus all dividends. It may be adjusted for prior period errors, if significant. Prior period adjustments are always a deduction from opening Retained Earnings balance. Ending Retained Earnings balance excludes Net Income for the year