a-company-has-a-net-income-of-20000-what-is-the-impact-on-retained-earnings-afte

Question

A company has a net income of $20,000. What is the impact on retained earnings after closing the income summary account?

Accepted Answer

Retained earnings increase by $20,000.

Answer

Retained earnings remain unchanged.

Answer

Retained earnings increase by $10,000.

Answer

Retained earnings decrease by $20,000.

A company has a net income of \$20,000. What is the impact on retained earnings after closing the income summary account?