Asked by Anthony Flesher on Jun 25, 2024
Verified
Which of the following items has no effect on retained earnings?
A) expenses
B) dividends declared
C) revenues
D) hiring a new employee
Retained Earnings
The part of a company's earnings that is not distributed as dividends to its shareholders but instead is held back or saved.
Hiring
The process of finding, evaluating, and establishing a working relationship with new employees.
- Appreciating the effects of myriad transactions on the complete assets, liabilities, stockholders' equity, including dividends.
Verified Answer
KA
Kaleea ArkellJun 28, 2024
Final Answer :
D
Explanation :
Hiring a new employee does not directly affect retained earnings. Retained earnings are impacted by net income (which is affected by revenues and expenses) and dividends declared. Hiring a new employee might influence future expenses, but it does not directly change the retained earnings balance.
Learning Objectives
- Appreciating the effects of myriad transactions on the complete assets, liabilities, stockholders' equity, including dividends.
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