Which of the following transactions will affect the balance of Retained Earnings?
A) issued common stock for cash
B) paid rent expense for the month
C) purchased land for cash
D) collection on account

Question

Quizplus · Accepted Answer

Retained earnings are affected by net income and dividends. Paying rent expense for the month (B) decreases net income, which in turn decreases retained earnings. The other options do not directly affect net income or dividends.

Which of the Following Transactions Will Affect the Balance of Retained