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