Retained Earnings Quiz

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Net income or loss (correct)

Both net income or loss and dividends paid to shareholders equally

Number of employees in the company

Dividends paid to shareholders

It is added to the beginning balance of retained earnings

It is divided among shareholders

It has no effect on the beginning balance of retained earnings

It is subtracted from the beginning balance of retained earnings (correct)

It increases the number of outstanding shares

It adds to the beginning balance of retained earnings

It has no effect on the beginning balance of retained earnings

It subtracts from the beginning balance of retained earnings (correct)

What is the primary factor that affects retained earnings? Signup and view all the answers

Net income or loss Signup and view all the answers

What happens to retained earnings when a company pays dividends to shareholders? Signup and view all the answers

The amount of the dividend is subtracted from the beginning balance of retained earnings Signup and view all the answers

How does a net loss for the period affect retained earnings? Signup and view all the answers

The amount of the net loss is subtracted from the beginning balance of retained earnings. Signup and view all the answers

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