Which of the following items has no effect on retained earnings?
A)expenses
B)dividends declared
C)revenues
D)hiring a new employee

Question

Quizplus · Accepted Answer

Hiring a new employee does not directly affect retained earnings. Retained earnings are impacted by net income (which is affected by revenues and expenses) and dividends declared. Hiring a new employee might influence future expenses, but it does not directly change the retained earnings balance.

Which of the Following Items Has No Effect on Retained