TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 4) Financial statements are business documents that are used to communicate information needed to make business decisions. 5) Retained earnings is the portion of net income that the company has kept over the years and reinvested into the business. 6) Net income decreases retained earnings 7) Net losses and dividends decrease retained earnings 8) A positive retained earnings indicates that the business has been able to accumulate earnings and expand overtime. ESSAY. Write your answer in the space provided or on a separate sheet of paper. 9) On May 10, Deborah rendered service to a client and earned $3,000 in cash. On May 12, Deborah incurred repair expense of $1,800. On May 18, Deborah rendered service to a new client in the amount of $8,000. Prepare an income statement for the month of May