Which of the following would most likely increase retained earnings?

[answerhappygod]

A) An increase in expenses.
B) An increase in revenues.
C) Declaring a cash dividend.
D) Issuing additional common stock.
Answer: B
Explanation: Net income increases retained earnings. Increased revenue, given a fixed expense
amount, would increase net income. An increase in expenses and declaring a cash dividend both
decrease retained earnings.