An amount earned by a corporation and not yet distributed to stockholders is
A) retained earnings.
B) net income.
C) capital stock.
D) stockholders' equity.

Question

Quizplus · Accepted Answer

Retained earnings refer to the portion of net income that a corporation decides to keep, rather than distribute to its shareholders as dividends. This amount is reinvested into the company for growth, debt reduction, or other purposes.

An Amount Earned by a Corporation and Not Yet Distributed