Assume the balance in the Retained Earnings account at January 1, 2017 is zero, and no dividends are declared in 2017. If a debit balance of $6000 exists in Retained Earnings after closing out revenues and expenses at the end of 2017, this indicates:
A) that the company had net income of $6000.
B) an increase in cash of $6000.
C) the company had a net loss of $6000.
D) a decrease in cash of $6000.
Correct Answer:
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