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

Respuesta :

Answer:

Decrease:

a)advertising expense

c) Insurance expense

d) Salaries & Wages Expense

g) Utilities Expens

Descrease:

e) Dividends

Increase:

b)Service revenue

f) Rent revenue

Explanation:

The retained earnings accumulates the net income of every year.

As net income is determinate like:

revenues - expense = gross profit

expense will make this difference lower and therefore not beign able to help you These are the changes for:

adv expense

service revenue

insurance exepense salaries and wages

Dividends will also decrease RE as they represent a disribution of the accumualted earnings in favor of the stockholders

Finally revenues increase it as they make net income to increase as well.

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