Assume the Balance in the Retained Earnings Account at January

Multiple Choice

Assume the balance in the Retained Earnings account at January 1,2019 is zero,and no dividends are declared in 2019.If a debit balance of $5,000 exists in Retained Earnings after closing out revenues and expenses at the end of 2019,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.