Retained earnings can be decreased by all of the following except for Group of answer choices stock splits. some disposals of treasury stock. stock dividends. cash dividends.

Answers

Answer 1

Answer:

stock splits.

Explanation:

Retained earnings also known as accumulated earnings, can be defined as the total amount of net income held by a corporation for its future use after paying out dividends to its shareholders.

The retained earnings statement refers to a financial statement that enumerate changes in retained earnings for an organization over a specific period of time. The retained earnings statement is the statement of owner's equity that outlines details of changes in the amount of retained earnings (profits) over a specified period in an organization.

The main purpose of preparing a retained earnings statement is to boost investor's confidence and improve market value.

Retained earnings can be decreased by the following; some disposals of treasury stock, stock dividends, cash dividends except for stock splits.


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