Which of the following items has no effect on retained earnings?
A)dividends
B)revenue
C)hiring a new employee
D)expense

Question

Quizplus · Accepted Answer

Retained earnings refer to the amount of profit left after dividends have been paid to shareholders. Hiring a new employee or incurring an expense will affect the company's net income and therefore have an effect on retained earnings. Revenue will increase retained earnings if it exceeds expenses, and paying dividends decreases retained earnings.

Which of the Following Items Has No Effect on Retained