acc2361 at Texas State

1. Retained Earnings

in Chapter 5 (Problem 1 of 2)

Which of the following would increase retained earnings?

  1. an increase to an expense account.
  2. an increase to a revenue account.
  3. a cash dividend being declared and paid to stockholders.
  4. issuance of additional shares of common stock.
Watch Solution (1:34) Hide Solution Reveal Solution

An increase in a Revenue account increases Net Income, which in turn would increase Retained Earnings.

The Rest Of The Practice Problems

Click Here to View All Chapter 5 Problems at Once View
1 Retained Earnings
You are here. 		Easy
2 Calculating Operating Income Hard

Chapter 5 Videos

1 The Classified Balance Sheet 4:48
2 The Multistep Income Statement 12:44
3 Retained Earnings vs Shareholder's Equity 6:41