On the Statement of Retained Earnings

question 123

Multiple Choice

On the statement of retained earnings:

• A)a net loss decreases retained earnings.
• B)net income decreases retained earnings.
• C)dividends declared increase retained earnings.
• D)a deficit ending balance in retained earnings is not allowed.

---

Definitions:

Petty Cash

A small fund kept on hand used for minor, miscellaneous expenses of a business.

Misc. Expense

Miscellaneous Expense refers to small, infrequent costs that are not categorized under a specific heading in financial statements.

Misc. Revenue

Miscellaneous revenue refers to income generated from activities not central to a business’s main operations.

Change Fund

Fund made up of various denominations that are used to make change for customers.