Because net income is the excess of revenues over liabilities,retained earnings increases by the amount of net income reported during the period less any dividends.

Name: Because net income is the excess of revenues over liabilities,retained earnings increases by the amount of net income reported during the period less any dividends.
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Question

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Net income is the excess of revenues over expenses, not liabilities. Retained earnings increase by the amount of net income reported during the period less any dividends.

Because Net Income Is the Excess of Revenues Over Liabilities,retained