Which of the following describes the classification and normal balance of the retained earnings account?
A)Asset,debit
B)Shareholders' equity,credit
C)Liability,credit
D)Shareholders' equity,debit

Question

Quizplus · Accepted Answer

Retained earnings is a part of shareholders' equity in the balance sheet and has a credit normal balance. This account represents the cumulative profits or losses earned by the company that have not been distributed as dividends to shareholders.

Which of the Following Describes the Classification and Normal Balance