Which of the following statements is true?
A)If revenues are less than expenses,the company has a net loss and retained earnings falls.
B)If revenues are greater than expenses,the company has net income and contributed capital rises.
C)If revenues are less than expenses,the company has a net loss and contributed capital rises to balance off the loss.
D)If revenues are greater than expenses,the company has net income and retained earnings falls.

Question

Quizplus · Accepted Answer

When a company's revenues are less than its expenses, it incurs a net loss, which decreases retained earnings as losses are subtracted from retained earnings in the equity section of the balance sheet.

Which of the Following Statements Is True