If retained earnings decreased during the year,and no dividends were paid,which of the following statements must be true?
A)Expenses for the year exceeded revenues.
B)The company did not have enough cash to pay its expenses.
C)Total equity decreased.
D)Liabilities increased during the year.

Question

Quizplus · Accepted Answer

If retained earnings decreased and no dividends were paid,the company must have reported a net loss.A net loss would have been the result if expenses for the year exceeded revenues.

If Retained Earnings Decreased During the Year,and No Dividends Were