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The net income of Hendley, Inc. for the year is $40,000. The dividends declared during the year were $51,000. Which of the following statements is true? A. Retained Earnings account decreases by $11,000. B. Retained Earnings account decreases by $40,000. C. Retained Earnings will remain the same. D. Retained Earnings account increases by $51,000..

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The net income of Hendley, Inc. for the year is $40,000. The dividends declared during the year were $51,000. Which of the following statements is true? A. Retained Earnings account decreases by $11,000. B. Retained Earnings account decreases by $40,000. C. Retained Earnings will remain the same. D. Retained Earnings account increases by $51,000.

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  • 1. The net income of Hendley, Inc. for the year is $40,000. The dividends declared during the year were $51,000. Which of the following statements is true? A. Retained Earnings account decreases by $11,000. B. Retained Earnings account decreases by $40,000. C. Retained Earnings will remain the same. D. Retained Earnings account increases by $51,000.