If retained earnings decreased during the year, and no dividends were paid, which of the following must be true?
A.Expenses for the year exceeded revenues
B. The company did not have enough cash to pay its expenses
C. Total equity decreased
D. Liabilities increased during the year
Answer:A
If retained earnings decreased during the year, and no dividends were paid, which of the following must be true?
A.Expenses for the year exceeded revenues B. The company did not have enough cash to pay its expenses C. Total equity decreased D. Liabilities increased during the year