Answered: Retained earnings: a. Has a normal…

Retained earnings: a. Has a normal debit balance. b. Decreases stockholders’ equity. c. Is equal to the balance in cash. d. Increases stockholders’ equity.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 12CDQ

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Question

Retained earnings:
a. Has a normal debit balance.
b. Decreases stockholders’ equity.
c. Is equal to the balance in cash.
d. Increases stockholders’ equity.

Definition Definition Assets available to stockholders after a company's liabilities are paid off. Stockholders’ equity is also sometimes referred to as owner's equity. A stockholders’ equity or book value generally includes common stock, preferred stock, and retained earnings and is an indicator of a company's financial strength.

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