Net income that is not paid to shareholders as dividends increases _____.
A)cash receipts
B)retained earnings
C)cash disbursements
D)long-term liabilities
E)current liabilities

Question

Quizplus · Accepted Answer

Net income that is not paid to shareholders as dividends is added to retained earnings, which is a component of stockholders' equity on the balance sheet. Therefore, the correct answer is choice B, retained earnings.

Net Income That Is Not Paid to Shareholders as Dividends