Which of the following does not affect retained earnings?

Question

Quizplus · Accepted Answer

Retained earnings represent the portion of a company's net income or profit that is kept by the company, rather than distributed as dividends to shareholders. Therefore, any transactions that affect net income, such as earning revenues or incurring expenses, will affect retained earnings. Declaration and payment of dividends will also reduce retained earnings. However, investments by stockholders do not affect retained earnings directly as they are not transactions related to the company's operations or profits.

Which of the Following Does Not Affect Retained Earnings