Which of the following increases retained earnings?
A)Net loss
B)Net income
C)Expenses
D)Dividends

Question

Quizplus · Accepted Answer

Net income increases retained earnings, as it represents the profits earned by the company after all expenses have been deducted. Expenses reduce net income, while dividends are payments made to shareholders and decrease retained earnings. Net loss, on the other hand, decreases retained earnings as it represents a loss incurred by the company rather than a profit.

Which of the Following Increases Retained Earnings