The total amount of profits generated by a company and not distributed as dividends to stockholders is called
A) revenue.
B) common stock.
C) par value.
D) additional paid-in capital.
E) retained earnings.

Question

Quizplus · Accepted Answer

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

The Total Amount of Profits Generated by a Company and Not