Assume the Beginning Balance in the Retained Earnings Account Is

Multiple Choice

Assume the beginning balance in the Retained Earnings account is zero. If a debit balance of $5,000 exists in Retained Earnings after closing out revenues and expenses at the end of the current period, it 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.