Which of the Following Events Will Cause Retained Earnings to Increase

question 137

Multiple Choice

Which of the following events will cause retained earnings to increase?

• A)Dividends declared by the Board of Directors.
• B)Net income reported for the period.
• C)Net loss reported for the period.
• D)Issuance of stock in exchange for cash.

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Definitions:

Contribution Format

An income statement format that separates fixed costs from variable costs to highlight the contribution margin of a company's products or services.

Apparel Segment

The apparel segment refers to the portion of a business or market that is focused on the production and sale of clothing and accessories.

Accessories Segment

A part of a business that focuses on products that are meant to complement the main product offerings, often enhancing the user experience.

Fixed Expenses

Costs that do not change with the level of output or activity within a certain period.