Hot Tamale Company had $120 000 of revenues and $113 000 of expenses. No dividends were paid. These factors will result in which of the following?

Name: Hot Tamale Company had $120 000 of revenues and $113 000 of expenses. No dividends were paid. These factors will result in which of the following?
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Question

Quizplus · Accepted Answer

The company's revenues exceed its expenses, resulting in a net income of $7,000. Since no dividends were paid, this net income will increase retained earnings.

Hot Tamale Company Had $120 000 of Revenues and $113