Which of the following would immediately cause a change in a corporation's retained earnings?
Posted: Sat Aug 07, 2021 6:51 am
A) Net income or net loss and declaration of dividends.
B) Declaration of dividends and issuance of common stock to new stockholders.
C) Net income and issuance of stock to new stockholders.
D) Declaration of dividends and purchase of new machinery.
Answer: A
Explanation: Beginning retained earnings + net income − dividends = ending retained earnings.
B) Declaration of dividends and issuance of common stock to new stockholders.
C) Net income and issuance of stock to new stockholders.
D) Declaration of dividends and purchase of new machinery.
Answer: A
Explanation: Beginning retained earnings + net income − dividends = ending retained earnings.