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Which of the following factors would explain an increase in retained earnings?
a. Net loss.
b. Net income.
c. Dividends.
d. Investments by stockholders
Increase in retained earnings is a factor of increase of net income of a period
Increase in retained earnings would be due to net income.
Only The Net income will Increase The Retained Earning
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An increase in net income/net profit will result in an increase in retained earnings.
Net Income increace the retained earnings
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Net Income increase the retained earnings
Dr: Net Income
Cr: Retained Earnings
An Increase in Retained earnings are directly impacted by the same items that impact net income. These include revenues, cost of goods sold, operating expenses, and depreciation. The higher the retained earnings of a company, the stronger sign of its financial health.
An Increase in the net income will increase Retained earnings
