if-a-company-declares-dividends-of-10000-how-does-this-affect-the-retained-earni

Question

If a company declares dividends of $10,000, how does this affect the retained earnings account?

Accepted Answer

Retained earnings decrease by $10,000.

Answer

Retained earnings increase by $10,000.

Answer

Retained earnings remain unchanged.

Answer

Retained earnings are converted into cash.

If a company declares dividends of \$10,000, how does this affect the retained earnings account?