If a company's total assets increased while liabilities and common stock were unchanged,then
A)revenues were greater than expenses.
B)retained earnings were less than net income during the period.
C)no dividends were paid during the period.
D)the company must have purchased assets with cash.

Question

Quizplus · Accepted Answer

Retained earnings = Net income - DividendsIf liabilities and common stock are unchanged, then the increase in total assets must be due to an increase in retained earnings. This can only happen if revenues are greater than expenses (i.e., the company has a net income) and no dividends are paid.

If a Company's Total Assets Increased While Liabilities and Common