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A decrease in retained earnings can be explained by the following factors?

8. A decrease in retained earnings can be explained by the following factors?

1. Investment by shareholders
2. Assignments
3. Net loss
4. Total income

Answer: C) Net loss

Explanation:

Events that result in total loss in business flow and cash outflow will reduce the retained profits. This is usually the result of paying the costs of doing business. Additional costs such as rent, payment and purchasing of goods or services to provide services or products to customers are all factors that will reduce savings. Anything that deducts the income of a business or cash results in the immersion of the savings, even if the costs are required to keep the business running.