In the context of balance sheets, retained earnings are a major component of the _____ section.
A) owners' equity
B) statement of cash flows
C) company's liabilities
D) articles of incorporation

Question

Quizplus · Accepted Answer

Retained earnings are part of the owners' equity section on a balance sheet, representing the cumulative amount of net income that has been retained in the company rather than distributed to shareholders as dividends.

In the Context of Balance Sheets, Retained Earnings Are a Major