If the balance in Retained Earnings on January 1,2017 was zero,then a credit balance in Retained Earnings on December 31,2017 (after closing revenue and expense accounts)represents net income for the accounting period providing that no dividends were declared.

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A credit balance in Retained Earnings indicates that the company's net income exceeded its dividends and losses during the accounting period. Therefore, if the balance in Retained Earnings on January 1, 2017 was zero, and if no dividends were declared, a credit balance in Retained Earnings on December 31, 2017, indicates that the company has generated net income during the accounting period.

If the Balance in Retained Earnings on January 1,2017 Was