When will retained eamings contain a positive balance? Negative bolance?

A$.$ Revenue and gains increase retained earnings, whereas expenses, losses, and distitutions to owners $($dividends$)$ decrease retained earnings. When reveruts and gains exceed expenses, losses, and dividends ever time, retained earnings is positive. Retained earnings is negative when experses, losses, and dividends exceed revenues and gains over lime$.$ A negative balance in retained sarnings is called a deficit.

B$.$ Cash fuctuations increase or decrease retained earnings. We represent retaired earnings in equation form as follows: ending stained eamings equals beginning netained earnings plas charges in cash. When cash increases, relained earnings is positive. Retained eamings is regative when cash deoreases. A negative talance in retained earnings is called a defor

C$.$ Revenue and gains decrease retained earnings, whareas expenses, losses, and distributions to owners $($divedends$)$ increase retained eamings. When revenues and gains are less than experstes, losses, and dividends over lime$,$ retained earnings is negalive. Retained earnings is positive when expenters, losser, and dividende excest revenses and gains over lime A negative balance in retained earnings is called a gain.

D$.$ Revenue and gains increase retained earnings, whereas expenses, losser, and distributions to owners $($dividends$)$ decrease retained earnings. When revenses and gains exseed experses. losses, and dividends over time, retained eamings is positive. Retained earnings is negative when expenses, losses, and dividends exceed revenues and gains over lime$.$ A negative balance in retained earnings is called a deflot. The retained earnings balance should always equal the cash balance.