Which of the Following Statements Regarding the Retained Earnings Account

question 26

Multiple Choice

Which of the following statements regarding the retained earnings account is not true?

• A)It normally has a credit balance.
• B)Its balance is increased by revenues.
• C)Its balance is decreased by expenses.
• D)Its balance is increased by the declaration of dividends.

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Definitions:

Contingency Planning

The process of preparing for unexpected events by developing strategies to address and mitigate risks.

Alternative Courses

Different paths or strategies that can be chosen in decision-making processes to achieve a specific goal.

Actions

Deeds or steps taken in order to achieve a specific purpose.

Scenario Planning

A strategic planning method used to make flexible long-term plans based on different possible future scenarios.