Which of the Following Would not Affect the Balance of the Retained

question 119

Multiple Choice

Which of the following would not affect the balance of the Retained Earnings account?

• A)Net income.
• B)Stock dividend.
• C)Stock split.
• D)Gains and losses of a company.

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Definitions:

Transformational Change

Refers to the comprehensive and radical shifts that affect an organization's structure, culture, and operations, aiming for improvements in effectiveness and efficiency.

Reactive Change

Adjustments or transformations that occur in response to external pressures, rather than from proactive planning.

Incremental Change

A gradual, step-by-step approach to modifying processes, products, or services, often as part of a strategy to manage risk or introduce innovation.

Transformational Change

A profound or radical shift that fundamentally alters the nature or direction of an entity.