Retained earnings are
A)the shareholders' claim on total assets.
B)equal to cash.
C)equal to revenues.
D)the amount of net income kept in the corporation for future use.

Question

Quizplus · Accepted Answer

Retained earnings represent the portion of net income that a company keeps (retains) rather than distributing to its shareholders as dividends. This accumulated income is used for reinvesting in the company, paying off debt, or saving for future use.

Retained Earnings Are