Which of the following transactions would NOT result in an increase to retained earnings?
A) correction of an error in which expenses were overstated in a previous year
B) issuance of a 3-for-1 stock split
C) retrospective application of a new accounting policy that results in higher net income in the previous year.
D) earning of net income for the period

Question

Quizplus · Accepted Answer

A stock split does not affect retained earnings. option A, C, and D all result in an increase in retained earnings.

Which of the Following Transactions Would NOT Result in an Increase