Ask Question
6 April, 20:02

Retained earnings on the balance sheet?

a) increase as operating income increases

b) equals the sum of all net income before preferred dividends are deducted

c) equals common stock plus capital in excess of par

d) have already been reinvested in the firm

+5
Answers (1)
  1. 6 April, 23:23
    0
    The answer is D. have already been reinvested in the firm

    Explanation:

    Retained Earning is that part of income or profit that was not distributed out as dividend.

    It is retained to grow the business or make the business bigger. It is part of shareholder's equity.

    Option A is wrong. It doesn't increase with operating income. It depends on dividend policy and the net profit
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Retained earnings on the balance sheet? a) increase as operating income increases b) equals the sum of all net income before preferred ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers