All of the following will affect retained earnings except
A) expenses incurred.
B) dividends declared and paid.
C) revenues earned.
D) investments by owners.

Question

Quizplus · Accepted Answer

Retained earnings represent the portion of net income that a company retains for future use rather than distributing to shareholders in the form of dividends. Investments by owners, or any changes in the equity accounts other than net income, do not directly impact retained earnings. Expenses incurred and revenues earned affect net income, and dividends declared and paid reduce retained earnings.

All of the Following Will Affect Retained Earnings Except