Which of the following would most likely increase retained earnings?

Question

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Retained earnings represent the portion of a company's profits that are not distributed as dividends but are instead reinvested in the business or used to pay off debt. An increase in revenues would typically increase retained earnings, as it means the company is generating more profits to be reinvested. The other options would either decrease retained earnings (declaring a dividend) or have no direct impact on retained earnings (increase in expenses, issuing additional stock).

Which of the Following Would Most Likely Increase Retained Earnings