acct209 at Texas A&M

2. Retained Earnings

in Chapter 1 (Problem 2 of 6)

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 1 Problems at Once View
1 Matching Basic Vocabulary Easy
2 Retained Earnings
You are here. 		Easy
3 Account Classifications Moderate
4 Solving for Net Income Moderate
5 Tying the Statements Together Moderate
6 Solving for Retained Earnings Hard

Chapter 1 Videos

1 The Accounting Equation 3:02
2 Assets vs Liabilities 5:32
3 Shareholder's Equity 5:26
4 The Balance Sheet 5:52
5 The Statement of Retained Earnings 5:51
6 Retained Earnings vs Shareholder's Equity 6:41
7 The Income Statement 6:19
8 The Statement of Cash Flows 6:02
9 How the Statements Work Together 9:02
Chapter 2 →