Which of the following items has no effect on retained earnings?
A) expense
B) dividends
C) revenue
D) hiring a new employee

Question

Quizplus · Accepted Answer

Hiring a new employee does not directly affect retained earnings. Retained earnings are impacted by net income (which is affected by revenues and expenses) and dividends. Hiring a new employee is an operational decision that may influence future expenses or revenues, but it does not directly change the retained earnings balance.

Which of the Following Items Has No Effect on Retained