Which of the following would eventually cause a reduction in retained earnings?
A)Receiving contributions from investors.
B)Earning unearned revenue.
C)Billing customers for services provided.
D)Using up supplies.

Question

Quizplus · Accepted Answer

Using up supplies decreases assets and ultimately reduces net income, which in turn reduces retained earnings. The other options do not directly affect retained earnings.

Which of the Following Would Eventually Cause a Reduction in Retained