Retained earnings indicate the amount of cash available for distribution to shareholders.

Name: Retained earnings indicate the amount of cash available for distribution to shareholders.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Retained earnings represent the cumulative amount of net income earned by a company that is retained by the company rather than distributed to shareholders as dividends. It does not specifically indicate cash available, as it may be reinvested in assets or used for debt repayment.

Retained Earnings Indicate the Amount of Cash Available for Distribution