Which of the following transactions affects both retained earnings and net income?
Posted: Sat Aug 07, 2021 7:09 am
) 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.
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.