Which of the Following Will Increase Retained Earnings

question 30

Multiple Choice

Which of the following will increase retained earnings?

• A) Expenses > revenues.
• B) Dividends are declared and paid.
• C) Revenues > expenses.
• D) Cash is received from customers on account.

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Definitions:

Accounts Receivable Turnover

A financial ratio that measures how effectively a company collects cash from credit sales by comparing net credit sales with the average balance of accounts receivable.

Fiscal Years

A one-year period that companies and governments use for financial reporting and budgeting, differing from the calendar year.

Maturity Value

The amount payable to an investor at the maturity date of a financial instrument, typically the principal plus any final interest payments.

60-Day Note

A type of short-term debt where the repayment is due 60 days after issuance.