How do revenues for a period relate to the beginning and ending balances in retained earnings?
A) Revenues will increase the beginning balance of retained earnings for the period.
B) Revenues will decrease the beginning balance of retained earnings for the period.
C) Revenues less expenses will either increase or decrease the beginning balance of retained earnings for the period.
D) Revenues less expenses will either increase or decrease the ending balance of retained earnings for the period.

Question

Quizplus · Accepted Answer

Revenues, when combined with expenses, result in net income or loss, which affects the ending balance of retained earnings, not the beginning balance.

How Do Revenues for a Period Relate to the Beginning