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6. Retained Earnings

in Chapter 2 (Problem 6 of 13)

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 2 Problems at Once View
1 Account Classification Easy
2 Current Assets Easy
3 Journal Entry - Inventory Easy
4 Journal Entry - Sales Easy
5 Land Purchased With Cash Easy
6 Retained Earnings
You are here. 		Easy
7 T/F: Liabilities and Equity Easy
8 T/F: T-Account Logic Easy
9 Normal Balances Moderate
10 Solving for Missing Amounts Moderate
11 The Effect of Journal Entries Moderate
12 What Should Be Journaled Moderate
13 Account Classifications Hard
← Chapter 1

Chapter 2 Videos

1 Current Assets 9:57
2 Non-Current Assets 10:25
3 Current Liabilities 6:24
4 Non-Current Liabilites 2:00
5 Contributed Capital 5:10
6 The Classified Balance Sheet 4:48
7 Retained Earnings vs Shareholder's Equity 6:41
8 T-Accounts 3:15
9 Debits and Credits 6:49
10 Determining Normal Balances For Assets & Liabilities 10:04
11 Determining Normal Balance for Shareholder's Equity 11:53
12 Normal Balance Shortcut: Double Entry 11:51
13 Normal Balance Shortcut: DEAD Mnemonic 2:36
14 The Journal, Ledger, Trial Balance 14:00
Chapter 3 →