Multiple Choice
Assume the balance in the Retained Earnings account at January 1,2015 is zero,and no dividends are declared in 2015.If a debit balance of $5,000 exists in Retained Earnings after closing out revenues and expenses at the end of 2015,this indicates:
A) that the company had net income of $5,000.
B) an increase in cash of $5,000.
C) the company had a net loss of $5,000.
D) a decrease in cash of $5,000.
Correct Answer:
Verified
Correct Answer:
Verified
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