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Option B-(Contribution by Share holder) does not effect the Retain earning straight.

You are watching: Which of the following does not affect retained earnings

Other things, Dividend , profit and loss directly effect the Retain earning bereason Dividend asserted decreased the Retain earning and also LOSS reason decrease in maintained earning and also Profit will add to maintained earning.

one more side Shareholder contribution do not have actually any kind of connect with Retain earning directly.


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B. Contribution by shareholders

Retained earnings:

Are undispersed percent of earnings to shareholders during the previous fiscal year, if the company has actually accomplished a profit of million pounds and took the company"s administration with the General Assembly chose not to distribute these revenues to shareholders, these profits are maintained revenue, it will certainly be carried over and also included to shareholders" equity under retained earnings, and the company"s complimentary to use these funds as long as the firm came under the regulate of the management, the main objective of this procedure is to re-employ these funds in order to attain a better return on investment than if acquired by shareholders on the develop of cash dividends.


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Answer added by Bansri Santosh, Product & Sales Specialist , QFBA3 months ago

Dividends do not affect RE


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Answer included by Mohamed Ismail, Accountant , NEWPOWER-KSA LTD CO.5 years ago

d- net loss...........................


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