Which of the following transactions affects both retained earnings and net income?

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899559
Joined: Mon Aug 02, 2021 8:13 am

Which of the following transactions affects both retained earnings and net income?

Post by answerhappygod »

) The payment of a cash dividend.
B) The recording of revenue for services provided.
C) The issuance of stock in exchange for cash.
D) The borrowing of money from a bank.
Answer: B
Explanation: Recording of revenue increases net income, which in turn increases retained
earnings.
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Top
Post Reply

Return to “Archived Questions & Answers”