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:

Paying

The act of giving money, goods, or other forms of value in exchange for an item, service, or to fulfill an obligation.

Debt

An amount of money borrowed by one party from another, often with the condition of repayment with additional interest.

Promissory Note

A written, legally binding promise to pay a specified sum of money to a designated party on demand or at a defined future date.

Negotiable

Capable of being transferred or modified through discussion or compromise.