A company's retained earnings balance increased $50,000 last year; therefore, net income last year must have been $50,00
Posted: Sat Aug 07, 2021 6:34 am
A company's retained earnings balance increased $50,000 last year; therefore, net income last
year must have been $50,000.
Answer: FALSE
Explanation: Retained earnings is increased by net income and decreased by dividends.
Therefore, we would need to know the dividend amount was zero in this situation to make the
above statement true.
year must have been $50,000.
Answer: FALSE
Explanation: Retained earnings is increased by net income and decreased by dividends.
Therefore, we would need to know the dividend amount was zero in this situation to make the
above statement true.