Retained earnings are the same as cash.

Name: Retained earnings are the same as cash.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Retained earnings are not the same as cash. Retained earnings are the portion of a company's net income that is kept by the company rather than paid out as dividends to shareholders. While retained earnings can eventually be used to generate cash, they are not the same as cash and cannot be used to make immediate payments or purchases.

Retained Earnings Are the Same as Cash