Typically, the only credit to the retained earnings account for a corporation is a. any withdrawals by the owners. b. net loss of the period. c. net income of the period. d. the initial investment of stockholders.

Answer is C. net income of the period

A is wrong because withdrawals by owners would only reduce the credit and not add anything to it.

B is also wrong since debiting the retained earnings will also decrease the equity so it will result in a net loss for the company.

Answer is C since crediting the net earning implies that the organization earned some profit which would increase the equity.

D is wrong too because the initial investment does not go to the retained earnings.

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