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Assume the Balance in the Retained Earnings Account at January

Question 141

Multiple Choice

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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