Retained earnings is equity that is generated internally by corporate business transactions.

Name: Retained earnings is equity that is generated internally by corporate business transactions.
Brand: Quizplus
Rating: 4.8 (51 reviews)

Question

Quizplus · Accepted Answer

Retained earnings refer to the portion of a company's profits that is kept aside and reinvested in the business rather than distributed to shareholders as dividends. They are generated internally by the company's business operations and thus are a form of equity.

Retained Earnings Is Equity That Is Generated Internally by Corporate