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

Retained earnings will increase because the company made a profit (revenues exceeded expenses), and no dividends were paid out, meaning all profits are retained in the business.

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