If the retained earnings account increases from the beginning of the year to the end of the year, then

A) net income is greater than dividends declared.
B) a loss is less than dividends declared.
C) additional investments are less than reported losses.
D) dividends were received.

Retained Earnings Account

An equity account on the balance sheet that represents the accumulated net income of a company that has not been distributed to shareholders as dividends.

Net Income

The amount of profit remaining after all expenses, taxes, and costs have been subtracted from total revenue.

Dividends Declared

Profit distributed to shareholders that the company's board of directors has committed to pay out.