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ArbitrLikvidat [17]
2 years ago
9

Indicate the effect each account has on retained earnings. (increase, decrease, or no effect)

Business
1 answer:
mojhsa [17]2 years ago
5 0

Answer:

<em><u>Decrease:</u></em>

a)advertising expense

c) Insurance expense

d) Salaries & Wages Expense

g) Utilities Expens

<em><u>Descrease:</u></em>

e) Dividends

<em><u>Increase:</u></em>

b)Service revenue

f) Rent revenue

Explanation:

The retained earnings accumulates the net income of every year.

As net income is determinate like:

revenues - expense = gross profit

expense will make this difference lower and therefore not beign able to help you These are the changes for:

adv expense

service revenue

insurance exepense salaries and wages

Dividends will also decrease RE as they represent a disribution of the accumualted earnings in favor of the stockholders

Finally revenues increase it as they make net income to increase as well.

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You are considering two independent projects. Project A has an initial cost of $125,000 and cash inflows of $46,000, $79,000, an
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Answer:

Accept Project A and reject Project B

Explanation:

See the images to get the answer.

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If Internal rate of return (IRR) < the cost of capital = Reject the project.

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Answer:

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