Recording revenues and expenses directly in the Retained Earnings account suppresses information about the causes of net income.

Name: Recording revenues and expenses directly in the Retained Earnings account suppresses information about the causes of net income.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Recording revenues and expenses directly in the Retained Earnings account does not allow for the differentiation between the sources of net income, which could be important information for analysis and decision making.

Recording Revenues and Expenses Directly in the Retained Earnings Account