Question Which of the following actions or events does not result in an addition to retained earnings?a. a quasi-reorganizationb. net income for the periodc. correction of an error in which ending inventory was understated in a previous yeard. issuance of a 3-for-1 stock split

Explanation -1. Retained Earnings -Retained earnings is the accumulated profit retained by the company over a period of time. Net Income of the company will increase the balance of retained earnings. Loss for the period and dividend declared by the company, Stock Dividend Declared by the company will decrease the balance of retained earnings.Solution -Actions or events does not result in an addition to retained earnings -a. a Quasi-reorganization - Reorganization of financial statement affect the assets as well as liability of the organization that results in reduction in the assets and increase in the liabilities. That will reduce the net income for the company and resulted decrease  the retained earnings.   Following event will increase the retained earnings -c. correction of an error in which ending inventory was understated in a previous year - In the previous year if ending inventory understated it will be corrected in the current year. Resulted in increase in ending inventory and decrease in cost of goods sold. Hence it will increase the net income resulted increase in Retained Earnings.b. net income for the period - Net Income will increase the balance of retained earnings.  No result in the retained earnings -d. issuance of a 3-for-1 stock split - Stock split does not affect the retained earnings. Splitting shares only increase the number of shares and decrease the par value of the same. ...