If retained earnings increases from the beginning of the year to the end of the year, then: a. profit is greater than dividends paid. b. additional investments are greater than profit. c. dividends paid are greater than profit. d. additional investments are less than losses.

The correct answer is a. profit is greater than dividends paid.

Here's why:

Retained earnings are the portion of a company's profit that is held or retained and saved for future use. Retained earnings could be used for funding an expansion or paying dividends to shareholders at a later date.

If retained earnings increase from the beginning of the year to the end of the year, it means that the company has made a profit and has chosen to reinvest it in the business rather than pay it out as dividends.

Therefore, if retained earnings have increased, it means that the company's profit is greater than the dividends it has paid out.

The other options (b, c, and d) are not necessarily true. Additional investments could be funded from sources other than profit, such as borrowing or issuing more shares. Dividends paid could be less than profit, which would still result in an increase in retained earnings. And additional investments being less than losses does not necessarily relate to an increase in retained earnings.