The Retained Earnings Account Is A Stockholders' Equity Account That Normally Has A Credit Balance. The Retained Earnings Account Has Three Components-Revenues, Expenses, And Dividends. The Difference Between Revenues (Increased By Credits) And Expenses (Increased By Debits) Equals Net Income. Net Income Increases The Balance Of Retained Earnings. Dividends

 

The Retained Earnings account is a stockholders' equity account that normally has a credit balance. The Retained Earnings account has three components-revenues, expenses, and dividends. The difference between revenues (increased by credits) and expenses (increased by debits) equals net income. Net income increases the balance of Retained Earnings. Dividends (increased by debits) decrease the balance of Retained Earnings. Debit Credit Assess whether the impact of external transactions results in a debit or credit to an account balance 0:14/0:24 Knowledge Check 01 1x c Indicate how to increase and decrease each account listed below by selecting debit or credit. Account Increase Decrease Retained Earnings Credit Debit Revenues Credit Debit Expenses Dividends