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Factors that usually affect retained earnings directly include: net income or lo

ID: 2422740 • Letter: F

Question

Factors that usually affect retained earnings directly include:

net income or loss, and dividends

extraordinary items and losses from discontinued operations

stock dividends and gains or losses from the sale of treasury stock.

net income or loss, and the issuance of stock at an amount in excess of par value.

A.

net income or loss, and dividends

B.

extraordinary items and losses from discontinued operations

C.

stock dividends and gains or losses from the sale of treasury stock.

D.

net income or loss, and the issuance of stock at an amount in excess of par value.

Explanation / Answer

Factors that usually include retained earnings directly include the net income or loss, and dividends.

Others factors affect retained earnings indirectly.

So the answer here is A.