Solved:
Answered by AI, Verified by Human Experts
Indicate the effect each account has on retained earnings. (increase, decrease, or no effect)
Indicate the effect each account has on retained earnings. (increase, decrease, or no effect) a)advertising expense
b)Service revenue
c) Insurance expense
d) Salaries & Wages Expense
e) Dividends
f) Rent revenue
g) Utilities Expense
Answer:Decrease:a)advertising expensec) Insurance expensed) Salaries & Wages Expenseg) Utilities ExpensDescrease:e) DividendsIncrease:b)Service revenuef) Rent revenueExplanation:The retained earnings accumulates the net income of every year.As net income is determinate like:revenues - expense = gross profitexpense will make this difference lower and therefore not beign able to help you These are the changes for:adv expenseservice revenueinsurance exepense salaries and wagesDividends will also decrease RE as they represent a disribution of the accumualted earnings in favor of the stockholdersFinally revenues increase it as they make net income to increase as well....
Unlock full access for 72 hours, watch your grades skyrocket.
For just $0.99 cents, get access to the powerful quizwhiz chrome extension that automatically solves your homework using AI. Subscription renews at $5.99/week.