Which of the Following Items Has No Effect on Retained

question 115

Multiple Choice

Which of the following items has no effect on retained earnings?

• A) Expense
• B) Dividends
• C) Land purchase
• D) Revenue

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Definitions:

Direct Labor

The wages and other compensation paid to employees who are directly involved in the production of goods or services.

Direct Material

Direct material refers to the raw materials that can be directly attributed to the production of goods, essentially part of the finished product.

Lumber

Refers to processed wood used for construction or other purposes.

Steel

A hard, strong alloy mainly consisting of iron and carbon, widely used in construction and manufacturing.