Increases in revenues will ________.Increases in expenses will ________ .
A) increase Retained Earnings; increase Retained Earnings
B) increase Retained Earnings; decrease Retained Earnings
C) decrease Paid in Capital; decrease Paid in Capital
D) increase assets; increase liabilities

Question

Quizplus · Accepted Answer

Increases in revenues increase Retained Earnings because they represent income to the company. Increases in expenses decrease Retained Earnings because they represent costs that reduce the company's net income.

Increases in Revenues Will ________