Which of the following will increase retained earnings?
A) Expenses revenues.
B) Dividends are declared and paid.
C) Revenues expenses.
D) Cash is received from customers on account.

Question

Which of the following will increase retained earnings?
A) Expenses > revenues.
B) Dividends are declared and paid.
C) Revenues > expenses.
D) Cash is received from customers on account.

Quizplus · Accepted Answer

Retained earnings increase when revenues exceed expenses, as profits are not distributed as dividends but rather reinvested into the business. A, B, and D all decrease retained earnings.

Which of the Following Will Increase Retained Earnings