Which of the Following Statements Does Not Correctly Describe the Relationship

Multiple Choice

Which of the following statements does not correctly describe the relationship between the income statement and the ending retained earnings balance?

A) Net income increases the ending balance of retained earnings.
B) A net loss decreases the ending retained earnings balance.
C) A net loss does not affect the ending retained earnings balance.
D) Net income and net loss both affect the ending retained earnings balance.