Which of the following will not affect retained earnings?
A) declaration of a stock dividend
B) payment of a cash dividend previously disclosed
C) adjustment for an error of a prior period
D) net income
E) net loss

Question

Quizplus · Accepted Answer

The payment of a cash dividend does not affect retained earnings because the reduction in retained earnings occurs when the dividend is declared, not when it is paid.

Which of the Following Will Not Affect Retained Earnings