93.7k views
2 votes
In a statement of retained earnings, decreases in retained earnings result from ________.

a. revenues earned
b. net income
c. issuance of stock
d. net losses

User Losbear
by
4.4k points

1 Answer

7 votes

Answer: b

Step-by-step explanation:

Retained earnings are affected by any increases or decreases in net income and dividends paid to shareholders. As a result, any items that drive net income higher or push it lower will ultimately affect retained earnings.

User Ivo Amaral
by
4.9k points