If the retained earnings account increases from the beginning of the year to the end of the year, then
A)net income is less than dividends.
B)a net loss is less than dividends.
C)additional investments are less than net losses.
D)net income is greater than dividends.

Question

Quizplus · Accepted Answer

Retained earnings increase when net income exceeds dividends paid out to shareholders.

If the Retained Earnings Account Increases from the Beginning of the Year