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Which of the following events would lead to a decrease in a firm's retained earnings, and why? A : Payment of $10,000 in employee salaries, because salaries are considered an expense, and an increase in expenses will reduce a firm’s retained earnings B : Issuance of a $10,000 note payable in exchange for cash, because notes payable are considered a liability, and an increase in liabilities will reduce a firm's retained earnings C : Payment of $10,000 in employee salaries, because salaries are considered a liability, and an increase in liabilities will reduce a firm’s retained earnings D : Issuance of a $10,000 note payable in exchange for cash, because notes payable are considered an expense, and an increase in expenses will reduce a firm’s retained earnings
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Which of the following events would lead to a decrease in a firm's retained earnings, and why? A : P...
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