What does a retained earnings statement outline?

A retained earnings statement outlines the changes in retained earnings over a specific period. This financial statement provides detailed information about how the retained earnings have varied over that time frame, typically through factors such as net income or loss, dividends paid, and any other adjustments that may arise.

Understanding this statement is essential for stakeholders, as retained earnings indicate the portion of profit that has been reinvested in the business rather than distributed to shareholders. This reinvestment could potentially lead to growth opportunities for the company.

The other options focus on different aspects of financial reporting. Total revenue generated pertains to income statements, which summarize the total revenue and expenses within a specific period. Cash flow pertains to cash flow statements, detailing the inflows and outflows of cash over a period. Total assets and liabilities are found on the balance sheet, reflecting the company's financial position at a point in time. Each of these options underscores different essential components of a company’s overall financial health, but they do not specifically address the retained earnings statement.