Question 3 Which statement regarding retamed earnings is true? O a Since depreciation is a source of funds, the more depreciate a company has the larger its retained earnings will be other things held constant b. If a firm reports a loss on its income statement, then the retained earnings account as shown on the balance sheet will be negative O A firm can show a large amount of retained earings on its balance short yet need to borrow cash to make required payments. d. The retained earrings account as shown on the balance sheet shows the amount of cash that is available for paying dividends. Moving to the next question prevents changes to this