Retained earnings are a portion of owner's equity that has:
A) accumulated over time, but hasn't been paid to investors through dividends.
B) been paid to owners in dividends.
C) been used to pay debts.
D) all forms of long-term liabilities.
E) none of these

Question

Quizplus · Accepted Answer

Retained earnings represent the cumulative amount of net income that a company has kept, rather than distributed to shareholders as dividends.

Retained Earnings Are a Portion of Owner's Equity That Has