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4. Retained Earnings

in Chapter 3 (Problem 4 of 24)

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 3 Problems at Once View
1 Effect on the Current Ratio Easy
2 Closing Journal Accounts Easy
3 Revenue Journal Entry Easy
4 Retained Earnings
You are here. 		Easy
5 Revenue Recognition Easy
6 Current Assets Easy
7 Adjusting Entry Identification Easy
8 Revenue Recognition Easy
9 Solving for Missing Amounts Moderate
10 Closing Process Moderate
11 Determining Net Income From Journal Entries Moderate
12 Determining Net Income From Transactions Moderate
13 Adjusting Entry - Salaries Payable Moderate
14 Prepaid Rent Moderate
15 Adjusting Entry - Wage Expense Moderate
16 Revenue Recognition Moderate
17 The Effect of Transactions Hard
18 When You Forget to do Adjusting Entries Hard
19 Account Classifications Hard
20 Revenue and Expense Recognition Hard
21 Calculating Operating Income Hard
22 Adjusting Journal Entries Hard
23 Adjusting Journal Entries Hard
24 Year End Closing & Account Classification Hard
← Chapter 2

Chapter 3 Videos

1 Cash vs. Accrual Accounting 7:21
2 Expense Recognition 8:07
3 Accruals and Deferrals 15:07
4 What is an Adjusting Entry? 4:11
5 Adjusting Entry: Supplies 1:54
6 Adjusting Entry: Wages 4:52
7 Adjusting Entry: Unearned Revenue 2:11
8 Adjusting Entry: Interest 2:03
9 Contra-accounts 4:40
10 Depreciation 7:10
11 Current Assets 9:57
12 Non-Current Assets 10:25
13 Current Liabilities 6:24
14 Non-Current Liabilites 2:00
15 The Classified Balance Sheet 4:48
16 Contributed Capital 5:10
17 Retained Earnings vs Shareholder's Equity 6:41
18 The Multistep Income Statement 12:44
19 The Closing Process 10:37
20 Ratios: Working Capital 2:29
21 Ratios: Current Ratio 4:00
Chapter 4 →