The _____ account on the Balance Sheet shows profits that the firm has reinvested in the company.
A)retained earnings
B)stockholder's equity
C)intangible assets
D)notes payable

Question

Quizplus · Accepted Answer

The retained earnings account on the Balance Sheet shows profits that the firm has reinvested in the company over time instead of paying out as dividends to shareholders. This account is part of the stockholder's equity section of the Balance Sheet. Intangible assets and notes payable are separate accounts that do not show reinvested profits.

The _____ Account on the Balance Sheet Shows Profits That