If the retained earnings account increases from the beginning of the year to the end of the year, then

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Retained earnings represent the cumulative amount of net income a company has earned over time, less any dividends paid to shareholders. Therefore, if the retained earnings account increases from the beginning of the year to the end of the year, it means that the company earned more net income than it paid out in dividends, leading to an overall increase in the amount of money that is being retained in the business. Therefore, net income is greater than dividends.

If the Retained Earnings Account Increases from the Beginning of the Year